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Technology Stocks : How high will Microsoft fly?
MSFT 492.01+1.3%Nov 28 9:30 AM EST
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To: Logos who wrote (7958)5/25/1998 7:28:00 PM
From: Hal Rubel  Read Replies (5) of 74651
 
Monopoly Predatory Pricing

RE:"Re: It's very funny - depending on which Microsoft critic you talk to, Microsoft is either guilty of charging too much, or charging too little. Well, it's got to be one or the other, right? Antitrust "theory" is very flexible -basically anything Microsoft does is evidence of guilt."

This statement seems rather clumsy in avoiding the very obvious and widely recognized issue that raised it:

The only references to the price that the consumer pays has been in the context of Predatory Dumping.

Is it OK for an American company with short and intermediate term monopolistic powers in the market place to "DUMP" (think browser) its product on the market short term in order to create a monopoly long term? (We are talking pricing not related to the current cost of production. This is not a mater of economic efficiency.) If it is ok, then is it ok for a foreign company to "DUMP" product into the American market in order to knock our firms out of a product line so prices can be raised later?

What kind if general principle would one have to formulate to make it come out that it is OK for Microsoft to engage in predatory pricing and marketing tactics, but not right for, lets say, Korean RAM manufacturers to do the same?

I see a lot of sweeping Microsoft partisanism and very little principle in discussing how high Microsoft will fly on this board. It is the principles behind the issues that will decide, in part, the future of Microsoft. Lets put our thinking caps on and shoot from the hip a little less.

HR
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