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Strategies & Market Trends : Why the markets will continue higher...
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To: yard_man who wrote (706)5/20/1998 4:04:00 PM
From: Cage Rattler  Read Replies (1) of 745
 
Tippet:

"I think that MSFT ought to have to sell the product separately and not grossly under cost."

Using lead-loss items to entice customers into buying other products is too common a promotions technique to outlaw. We see everyone from big-chain grocery stores, who sell Thanks Giving turkeys at a loss, to the lowly drug pusher giving you your first hit or two for free. Dictating such a policy as you suggest seemingly violates antitrust or restraint-of-trade law itself.

"Certainly, we do this with respect to other companies when we accuse them of dumping -- the charge is the same, selling something under cost."

Good point, couldn't come up with a better one myself; this returns us to global markets and specifically the dumping backed by the Japanese government. This was not a free market by definition due to government intervention, that in the short run worked to the detriment of US trade balance. By the government intervention (analogous to the DOJ and Netscape) US producers were placed at a significant disadvantage to Japanese competitors. Remember, so far Microsoft has competed very successfully in this arena.

"It's a difficult issue. Perhaps when more software is actually purchased over the internet it won't be such an issue. Couldn't agree more.

"Perhaps the DOJ's option has been (INFLUENCED, my wording) limited by MSFT tactics. " Yes probably due to the fact that Microsoft has avoided political affiliation and contributions to the DNC and Republican counterpart until very recently.

Ciao, Ted
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