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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: Gerald R. Lampton who wrote (18877)5/4/1998 10:40:00 PM
From: Eugene Goodman  Read Replies (1) of 24154
 
Sorry. I made a mistake it wasn't Raising Rivals' Costs; it was
Reducing Rivals' Revenues. They said that these had never before
been adjudicated.

Economist May 2-8.

They say under Connected Markets that, " The Chicago school held that if markets are linked, a firm with a monopoly in one cannot boost
profits by monopolising [sic] another. [Why not. They are loosing me]
This is no longer accepted. If Microsoft monopolises [sic] browsers, [Is this a premis? They don't. Netscape does.] economists now argue,
it could prevent competetors such as Netscape from using browsers
to challenge its dominant position in operating software."

This is not a legal argument, it is mush. If MSFT didn't compete
with NSCP, who would? What should a court do? Limit MSFT market
share? How? If MSFT had not competed would the browser technology
be where it is now? Should the DOJ demand that MSFT increase the
cost of the browser to protect the profits of NSCP? And screw the
consumer.

The Economist says that Network Effects sound dramatic, but can be handled by traditional regulation.

I would say that the best result for MSFT would be a negotiated
settlement The worst, would be to go to court to establish new
legal and economic issues.

Gene


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