Skip to main content

Mcafee Demonstrative Regression On Oracle Incremental Percentage Discounts

This document is available in two formats: this web page (for browsing content) and PDF (comparable to original document formatting). To view the PDF you will need Acrobat Reader, which may be downloaded from the Adobe site. For an official signed copy, please contact the Antitrust Documents Group.


GOVERNMENT EXHIBIT P4023-A


Regression on Oracle's
Incremental Percentage Discounts

  • Effect on incremental discount
    • ebiz discount removed from base price
    • Effect of competitors
    • Customer annual revenues
    • eBusiness Suite
    • Oracle applications user

    Source of Data

    • Oracle discount approval forms and sales representative surveys

Incremental Percentage Discount Regression

Oracle Price Discount Regressions

Dependant variable: (Total Discount minus ebiz Discount) 1 - ebiz Discount)

  (1)

(2)

PeopleSoft

0.076
(0.042)
[.071]

0.136
(0.059)
[.026]
JD Edwards

0.011
(0.061)
[.861]

0.055
(0.091 )
[.553]
SAP

0.106
(0.061)
[.088]

0.164
(0.076)
[.037]
Siebel

0.050
(0.060)
[.406]

0.048
(0.084)
[.568]
Niche

-0.011
(0.039)
[.776]

0.022
(0.066)
[.734|
Net License Revenue

6.47E-8
(2.04E 8)
[.002]

4.79E-8
(2.30E 8)
[.045]
Customer's Annual Revenue

3.01E-5
(1.40E-5)
[.034]

2.49E-5
(2.02E- 5)
[.226]
EBS

0.012
(0.040)
[.769]

0.073
0.059
[.225]
Previous Apps Customer

0.025
(0.046)
[.589]

0.040
(0.064)
[.532]
Constant

0.268
(0.051)
[<.001]

0.245
(0.090)
[.010]
R2

0.234

0.344
N

122

47
Peoplesoft 0.076 0.136
  • The presence of PeopleSoft causes Oracle to offer additional discounts of approximately 8 to 14 percentage points
  • Two regressions translate into 13% and 25% price decreases, respectively


Table One

Oracle Price Discount Regressions

Dependent variable: (Total Discount minus ebiz Discclunt) / (I - ebiz

  (1)

(2)

PeopleSoft

0.076
(0.042)
[071]

0.136
(0.059)
[.026]

JD Edwards

0.011
(0.061)
[.861]

0.055
(0.091)
[.553]
SAP

0.106
(0.061)
[.088]

0.164
(0.076)
[.037]
Siebel

0.050
(0.060)
[.406]

-0.048
(0.084)
[.568]
Niche

-0.011
(0.039)
[-776]

0.022
(0.066)
[.734]
Net License Revenue

6.47E-8
(2.04E-8)
[.002]

4.79E-8
(2.30E-8)
[045]
Customer's Annual Revenue

3.01E-5
(1.40E-5)
[.034]

2.49E-5
(2.02E-5)
[.226]
EBS

0.012
(0.040)
[.769]

0.073
0.059
[.225]
Previous Apps Customer

0.025
(0.046)
[.589]

0.040
(0.064)
[.532]
Constant

0.268
(0.051)
[<.001]

0.245
(0.090)
[.010]
R2

0.234

0.344
N

122

47

Notes: Data are from Oracle discount approval forms and Oracle 2002 and 2003 Fiscal Year, North American Sales Representative Surveys. Standard errors are in parentheses; p-values are in brackets.

Updated August 14, 2015