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- From: helz@ecn.purdue.edu (Randall A Helzerman)
- Subject: Re: Is Microsoft the next Standard Oil?
- Message-ID: <1993Jan4.005008.13699@noose.ecn.purdue.edu>
- Sender: news@noose.ecn.purdue.edu (USENET news)
- Organization: Purdue University Engineering Computer Network
- References: <BzLMIH.II3@csulb.edu> <1992Dec29.015526.3909@noose.ecn.purdue.edu> <1993Jan2.225225.7080@gw.wmich.edu> <1i75u6INNbe4@shelley.u.washington.edu>
- Date: Mon, 4 Jan 1993 00:50:08 GMT
- Lines: 30
-
- In article <1i75u6INNbe4@shelley.u.washington.edu>, tzs@stein.u.washington.edu (Tim Smith) writes:
- |> > 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.
- |>
- |> Here's a third way for them to have all the drilling equipment: tell drilling
- |> equipment customers that unless they purchase Standard Oil drilling equipment,
- |> and do not purchase drilling equipment from others, they will no longer be
- |> sold oil from Standard Oil. If they control enough of the oil market (because
- |> they were more efficient than the competition, say), they could use that to
- |> dominate the drilling equipment market, even though they might not be more
- |> efficient there.
-
- Even in that case, the total cost to drilling equiptment users of oil + drilling
- equiptment must be less than any anybody else could *possibly* do it for
- Standard Oil to maintain its monopoly.
-
- I just don't see anything wrong with a Monopoly which is a monopoly because of
- low prices.
-
- |> If you think this is good, examine the former Soviet Union. The hypothetical
- |> drilling equipment market above is being controlled by one entity, not subject
- |> to market forces. Does it really matter that this entity is a company rather
- |> a government?
-
- Yes. A company can't enforce its will using guns--a government can.
-