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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Gerald R. Lampton who wrote (19686)5/24/1998 8:46:00 AM
From: Harvey Allen  Read Replies (2) of 24154
 
"Losses during a price war will be proportionately higher for the predator
because he faces the necessity of expanding output at ever higher costs, while the
victim will not only not expand output but has the option of reducing it and so
decreasing his costs."

I can see that view if your only business was selling one product
like gasoline but in Microsoft's case the browser is only one part
of the product line and I think that each free browser results in sales
of other Microsoft products: Front Page, Game Zone, hits to featured
sites, (which produces advertising revenue) so that any increase in costs
are more than offset by gains in other areas.
If we were dealing with "The Explorer Browser Company" we could get closer
to Bork's rationality.

Harvey

BTW I'm thinking more and more that Bill's intransigence makes
it more likely that the final decree will be breakup. Judge
Jackson's the one to do it. When the Micrsofties start standing
at attention and put a little honor in Your Honor I'll know that
that idea's sunk in.
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