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- Xref: sparky comp.os.os2.advocacy:11100 comp.os.ms-windows.advocacy:3514
- Path: sparky!uunet!enterpoop.mit.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 21:00:24 GMT
- Organization: Computer Science Department, Texas A&M University
- Lines: 44
- Message-ID: <1hqe98INNsef@tamsun.tamu.edu>
- References: <1992Dec29.015526.3909@noose.ecn.purdue.edu> <1hpr2dINN80o@tamsun.tamu.edu> <1992Dec29.194407.13490@noose.ecn.purdue.edu>
- NNTP-Posting-Host: neuron.tamu.edu
-
- In article <1992Dec29.194407.13490@noose.ecn.purdue.edu> helz@ecn.purdue.edu (Randall A Helzerman) writes:
- |In article <1hpr2dINN80o@tamsun.tamu.edu>, bdubbs@cs.tamu.edu (Bruce Dubbs) writes:
- |
- ||> 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.
- |
- |Under your scenario above (where Standard Oil keeps prices low enough that
- |others are discoureged from entring the market) I would say that Standard Oil
- |was charging a reasonable price. If nobody can beat your price, then you've
- |certainly got a reasonable price.
-
- Actually, I wasn't talking about Standard Oil, I was talking about MS.
- The cost of duplicating software is negligible. The cost of
- developing is high. If one company has deep pockets and no controls,
- the potential exists for that company to dump the product (software) for a
- period of time until the competitor goes out of business and then
- raise the prices again.
-
- Has MS done this? You bet. How much was OS/2 1.0? Answer: $325.
- Why so much? No competition. How much was the original OS/2 PDK?
- Answer: $2600. Same reason. Did IBM go along? Yup. They were
- partners, not competitors then.
-
- If I have an obsolete IBM XT running MS-DOS 5.0, why should I be
- forced to buy another license? Is my existing one invalid? I
- certainly can transfer the applications, why not the OS? The license
- agreements may be beneficial to some, but should those of us who don't
- need to get a new license be forced to buy one?
-
- Dumping of any product at such a low price to put competitors out of
- business or prevent them from entering the business hurts the
- consumer. Look beyond today. If competitors are eliminated, we all
- lose.
-
- -- Bruce
- --
- Bruce Dubbs | Oxymorons of note:
- bdubbs@neuron.tamu.edu | Honest Politician, Political Science,
- | Scrupulous Lawyer
-