To: uu who wrote (8083 ) 3/7/1998 11:09:00 AM From: QwikSand Respond to of 64865
Addi said:>But you see, as I said, consumer does have a choice. It is just that it does not want to exercise that choice! And the reason is PC vendors do not make that choice obvious to him. But why? Because PC vendors go by what the consumer wants! I partly agree, but not entirely. Remember Gates' volume for the ages, The Toll Road Ahead ? In it he describes a "positive feedback loop" in the market that, for example, eliminated the old Beta format from consumer video. VHS and Beta started out neck-and-neck, but as VHS slowly gained a lead in VCR volume, more 'software' titles became available for it relative to Beta. As the number of VHS titles exceeded Beta titles, more people opted for VHS decks. Eventually the gap reached the point where Beta became nonviable and vanished. This phenomenon has surely played a role in making Windows what it is today. The market does indeed want standards. Unix has shot itself in the foot for decades by providing make-believe rather than real standards, and the market can tell the difference. But still, I think there's a rule of thumb to apply to Addi's chicken-and-egg problem: To the extent that genuine positive feedback (in Gates' sense) is responsible for a product's market dominance, the dominance is legitimate even if a single company seems to benefit from it monopolistically. To the extent that lawyers are responsible for a product's market dominance, the dominance is monopolistic and worthy of legal investigation. (There is also predatory pricing, but that's another discussion, and it's a difficult discussion to have in the realm of PC software. PC software's history has been the addition of more value for less money, Gates or no Gates. Note this is not true for mainframe and Unix software.) Nobody went to VCR builders saying "if you build Beta VCR's, I'll make sure none of your machines will ever play Gone With The Wind or Deep Throat ." VCR builders made both kinds until the market decided. As Michael Dell proved last week, and as previous DOJ actions have shown, lawyers have a lot to do with Gates' market dominance. We're not dealing purely with a matter of "PC vendors going by what the consumers want", as Addi characterizes it. The choice that PC vendors want to exercise, and the choice that Gates' lawyers will let them exercise, are two different things. Regards, QwikSand