MSFT Internet Explorer vs. NSCP Navigator Message Board

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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Dermot Burke who wrote (18630)	4/20/1998 11:10:00 AM
From: Gerald R. Lampton	Read Replies (1) of 24154

Could someone do me a favor and translate the following from Chairman Bill's interview: "Think back to your first economics course. If we really felt no one else could do an OS our price would be the price where demand elasticity for the PC was in equilibrium with the price our license would push the PC up to. Consider what this would be against the average PC price. If we were charging a monopoly price for Windows it would be more than 4 times what it is." I get the bottom line conclusion, but the economic analysis (in italics) eludes me. How can demand elasticity be in equilibrium with a price? Regimond?

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