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- Xref: sparky comp.os.os2.advocacy:11067 comp.os.ms-windows.advocacy:3496
- Path: sparky!uunet!zaphod.mps.ohio-state.edu!cs.utexas.edu!tamsun.tamu.edu!bdubbs
- From: bdubbs@cs.tamu.edu (Bruce Dubbs)
- Newsgroups: comp.os.os2.advocacy,comp.os.ms-windows.advocacy
- Subject: Re: Is Microsoft the next Standard Oil?
- Date: 29 Dec 1992 15:32:29 GMT
- Organization: Computer Science Department, Texas A&M University
- Lines: 43
- Message-ID: <1hpr2dINN80o@tamsun.tamu.edu>
- References: <1992Dec22.113330.22921@noose.ecn.purdue.edu> <1992Dec27.191705.7069@gw.wmich.edu> <1992Dec29.015526.3909@noose.ecn.purdue.edu>
- NNTP-Posting-Host: neuron.tamu.edu
-
- In article <1992Dec29.015526.3909@noose.ecn.purdue.edu> helz@ecn.purdue.edu (Randall A Helzerman) writes:
- >In article <1992Dec27.191705.7069@gw.wmich.edu>, x90wardell@gw.wmich.edu writes:
- >
- >|> Let's go with your logic and say that Standard Oil was not
- >|> a monopoly. Let's say it existed today and only controlled 60% of the
- >|> market. 60% of a multitrillion dollar market is frightening.
- >
- >What's so frightening about that? As long as no one is forcing people
- >at gunpoint to buy their products, they could be put out of business
- >overnight by their customers.
- >
- >|> Let's change the situation to be more like the Microsoft situation,
- >|> let's say that not only did Standard Oil control 60% of the market but
- >|> they also made all the drilling equipment that could be had.
- >
- >If they started charging outragious prices for drilling equiptment then
- >someone else would start making drilling equiptment and get a piece of the
- >action. The only way that I can imagine that Standard Oil could possibly
- >have all of the drilling equiptment is for them to produce it cheaper than
- >anyone else could, in which case who cares, or for them to use guns, either
- >theirs or the goverments, to stop any competitors, in which case we've got
- >a problem.
-
- How about the situation when they charge more than the minimum for a
- "reasonable" profit, but not enough for someone else to afford the R&D
- costs to enter the market. Startup costs, before you have a product
- and before you have name recognition, are not negligible. This
- situation keeps prices high and the end consumer pays.
-
- You will probably ask: What is "reasonable"? A fair question. But I
- want you to answer that. If someone invests $100 million, is $50
- million a year profit reaonable? $5 million? $500 million?
-
- Another problem that I have with the MS contract with PC vendors is
- the requirement to bundle a DOS/Windows license with every PC they
- sell. I have a '286 PC in my closet that is old and virtually worth
- nothing (and broken). I have a license for DOS/Windows for it. Why
- do I have to buy a new license when I buy a new computer?
- -- Bruce
- --
- Bruce Dubbs | Oxymorons of note:
- bdubbs@neuron.tamu.edu | Honest Politician, Political Science,
- | Scrupulous Lawyer
-