In this fresh examination of the Microsoft antitrust case, Richard Gordon critically examines the economics of the US government's arguments. The conclusion is that the government presented a sketchy, incoherent, invalid economic case and relied upon creating the impression of misdeeds to persuade the courts. The primary charge is that Microsoft possessed an impregnable monopoly in operating systems for personal computers. According to the government, Microsoft created, included in its operating system, and vigorously promoted its internet browser solely to prevent the development of the Java/Netscape alternative. The promotion of this browser was considered predatory. Microsoft allegedly undertook similar acts against other companies. According to Gordon, the government failed to present even a clear statement of its charges and failed to substantiate the critical allegations. In this book, he concentrates on the underlying economics of the case and reviews the germane theory. He presents and evaluates implicit government arguments as well as Microsoft's refutations.
Readers in economics, law and public policy will find this well researched analysis enlightening.
Richard L. Gordon, Professor Emeritus of Mineral Economics, College of Earth and Mineral Sciences, Pennsylvania State University, US
Contents: Preface 1. Introduction: The Case and Its Critics 2. Modern Economics and the Microsoft Case 3. Determinants of Monopoly in Theory and Practice 4. Predation, Tying, Vertical Squeezes, and Other Competitive Tactics 5. QWERTY: Threat or Fable, Towards the Applications Barrier to Entry 6. Introduction to the Case 7. The Treatment of Monopoly in the Case 8. Microsoft's Tactics: Predation, Tying, and Threats in Theory 9. Microsoft's Tactics: Predation, Tying, and Threats in Practice 10. After the Facts: Decisions and Commentary 11. Summary and Conclusions Bibliography Index