ECON 308 Lecture Notes - Consent Decree, Market Power, Sunk Costs
20 Apr 2013
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Document Summary
Gilbert and katz- an economist"s guide to us v microsoft. Antitrust critics claim that the 19th century sherman act is ill-suited for the high- technology markets of the 21st century. In the microsoft case, the government asserted that microsoft engaged in anticompetitive conduct designed to maintain its operating system monopoly to the detriment of consumers. According to the government, antitrust enforcement would rein in the microsoft monopoly and result in more competition and innovation in the software industry. In its defense, microsoft contended that the company is a vigorous competitor that benefited consumers by supplying high quality, innovative products. According to microsoft, antitrust action against it would dampen incentives for competition and slow software innovation. Microsoft"s antitrust woes began in 1990 when the ftc launched an investigation of the company. After 3 years, the ftc"s legal staff recommended that the. Commission bring a case focusing on microsoft"s licensing practices with personal computer manufacturers.
