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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: John Donahoe who wrote (16497)1/22/1998 12:44:00 AM
From: Gerald R. Lampton   of 24154
 
>"What, precisely is the cost to us all of "free" IE, in its various guises?"

>There is no cost. Actually there is a net gain. The effect is to reduce the price of the
>'puter and accelerate access to the "information superhighway". Which inturn will
>increase our productivity and wealth. Which is a net plus.

There is an economic cost to "free ie." The artificially low price leads to overconsumption, which is inefficient. It also causes distortions in corporate resource allocation as the business has no economic foundation on which to base R&D decisions. Economic inefficiency leads to a reduction in overall economic welfare.

Of course, Microsoft says IE is not free: the cost of IE is included in the operating system.
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