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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: Pink Minion who wrote (21729)11/25/1998 12:11:00 AM
From: Gerald R. Lampton  Read Replies (1) of 24154
 
I don't think I'm "stuck" in any paradigms.

I think Microsoft is a natural monopoly, at least if you buy network effects and increasing returns, this "applications barrier" that Warren-Boulton talks about is reminiscent of a discussion Bork has about Joseph Bain's concept of barriers to entry on page 325 of his book, "The Antitrust Paradox." Basically, Bork says that Bain's discussion is really about a barrier to entry based on efficiency, which should not concern antitrust. I think network effects et al. are the same kind of thing.

As for what you call the "new paradigm," that's just Sun and Netscape trying to establish their own positive feedback loops so they can create their own monopolies based on network effects. There is nothing wrong with that; it's just that the market should decide who will win, free of government intervention.
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