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To: Gerald R. Lampton who wrote (18894)	5/5/1998 11:36:00 PM
From: Eugene Goodman	Respond to of 24154

Their web page [economist.com] has the article. If you subscribe you can see their page for '98. If not, it is $ 48. The quotes are OK. Their logic isn't always. How does the Law define price or the cost to the consumer? We all have a price quality correlation built in to our left hemisphere [or is it the right] so we don't often buy the cheapest. The dimension of quality includes warranty, simplicity, customer service,marketing, efficacity in use, upgrade frequency and cost, flexibility, even design and color. All of these have a different weight in arriving at the price that we are willing to pay and all of them can be improved to be more competitive. It could be argued that Netscape's browser is not worth the cost: IE + delta, because the difference in the quality of the technology and the intangibles outlined above were not equal to the price that they were charging. The bit that I have read on antitrust so far has not really focused on the options that are available to a company that is competing for a market. The most obvious is to establish a development program so that when the competition comes out with Ver 2, you issue Ver 3. Netscape made a smart move when they published their code. They could end up with a bug free Browser with new features. I agree with your comments on network effects. I would add that The idea that the market will choose an established inferior technology subsumes that the owner of that technology makes no improvements to justify an increase in market share. Gene