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- From: tzs@carson.u.washington.edu (Tim Smith)
- Newsgroups: comp.os.os2.advocacy,comp.os.ms-windows.advocacy
- Subject: Re: Is Microsoft the next Standard Oil?
- Date: 7 Jan 1993 02:53:31 GMT
- Organization: University of Washington School of Law, Class of '95
- Lines: 46
- Distribution: world
- Message-ID: <1ig5vbINNd6a@shelley.u.washington.edu>
- References: <1i75u6INNbe4@shelley.u.washington.edu> <0eFVwB3w165w@cmm.ovum.ka.sub.org>
- NNTP-Posting-Host: carson.u.washington.edu
- Keywords: economics 101
-
- cm@cmm.ovum.ka.sub.org (Christoph Mueller) writes:
- >tzs@stein.u.washington.edu (Tim Smith) writes:
- >
- >> If you think this is good, examine the former Soviet Union. The hypothetical
- >> drilling equipment market above is being controlled by one entity, not subjec
- >> to market forces. Does it really matter that this entity is a company rather
- >> a government?
- >
- >Yes, it does! There is quite a difference in how you became a monopoly.
- >In the former USSR, a company was put in that position by government
- >decision. I am not sure completely but I think AT&T was put in that position
- >too (at least the German Telecom is still--that's why the new AT&T or MCI are
- >much better/cheaper/...). Microsoft was never put anywhere by anything else
- >than market force (that's why they are still produce good software)
- >Ok, now they are in the position of a monopoly. But as soon as they get too
- >outrageous (so far they have gone far but not far enough) the competition
- >will get them again (even though the competition might be handicapped).
- >
- >Just my $0.01 worth
-
- However, we were not talking about Microsoft in the hypothetical drilling
- equipment market. In Microsoft terms, the equivalent would be if Microsoft
- decided that they wanted a monopoly on, say, word processors, and so refused
- to sell DOS or any other software to anyone who used or sold WordPerfect
- or any other word processor not made by Microsoft.
-
- If they did this (note that this has not been alleged, as far as I know.
- This is just a hypothetical), would you think that this is "good" because
- they used "market forces" to get this word processor monopoly, and to
- keep anyone else from competing? And if they then started producing word
- processors that were not as good as others could do, just how would others
- enter the market? It'll be real hard to get any software place to carry
- your better word processor if as soon as they did, Microsoft pulled all its
- products from that place.
-
- How is this any different from a government granted monopoly, in practical
- terms? Note that the monopoly under consideration (the word processor
- monopoly) was *NOT* generated by producing superior products that drove
- the other companies out and prevents others from entering the market. It
- was instead generated by using the monopoly in an unrelated market to
- force people in the word processor market to select inferior software.
-
- --Tim Smith
-
- ps: remember, this is a hypothetical situtation,. put in terms of computer
- companies rather than oil companies.
-