But how do you compensate for the class of predatory behavior, "raising rivals costs", without increasing the cost to the consumer?
Gene, I think that's what that Economedes article I linked to a while back was all about. If you have a monopoly over an upstream market but also compete in a downstream market, Economedes mathematically "proves" that you the monopolist have an incentive to raise the costs to your downstream competitors, using this unfair cost advantage to achieve a monopoly, or at least a competitive advantage, in the downstream market. I guess, to translate it into English, Microsoft, as the upstream OS monopolist, will use indirect means such as hidden APIs, delayed information releases and the like to raise the costs of its downstream rivals in the Windows-based Office Suite market.
Now, of course, if Microsoft does not have monopoly power in the upstream OS market, the whole analytical house of cards comes crashing down -- unless you happen to agree with the Eastman Kodak case. ;) |
