Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator -- Ignore unavailable to you. Want to Upgrade?

To: Gerald R. Lampton who wrote (19698)	5/25/1998 11:14:00 PM
From: Thure Meyer	Read Replies (1) \| Respond to of 24154

"I do agree with what I think you are saying is the issue: Is Microsoft's behavior socially desirable? If so, it should be protected. If not, it should be prohibited." Yes, something like that: I don't think that "free markets" are very efficient in some cases. I haven't thought through a lot of this either. I am approaching this whole thing by using some of the "newer" ideas like path dependence and lock in (as related to network externalities). This helps explain what has happened, but does not address deeper questions like socially desirable behavior in the market place; and its those questions that the DOJ will have to ask very carefully. I doubt if they can produce an unequivocal "smoking gun" and if Netscape starts making a lot of money, MS can always argue that their actions were fair and rational since Netscape adapted so well. This whole situation is really interesting because its highlighting what has actually happened in IT over the last 20 years. E.g., due to better communication, production and distribution systems, information technology, whether its a movie or software can gain market share at an astounding rate. Netscape is a great example of a 0-100 start up. Although Gates is much too melodramatic for my tastes in claiming that Windows can be replaced in a day, nonetheless the gist is that we are in a much more volatile market environment. Its also fascinating how the "build it and they will come" idea has penetrated through to anyone and everyone that has anything to do with the Internet (another field of dreams). Now, this is a strange situation for most companies, since its a pull not a push mechanism, and it strikes fear into the heart of many a traditional capitalist. Bill Gates understands full well that the Internet is a corrosive agent to the kind of monopoly that he has built. I don't think this case will end up being about Netscape per se. As the Internet expands and becomes ever more important it will be less and less likely that any one company will be allowed to control access. No one will put up with paying a toll to MS on a worldwide basis. Lets see how the DOJ approaches this. Thure