MGSC05H3 Lecture Notes - Lecture 3: Janet Reno, Learned Hand, Market Power
Document Summary
Why janet reno vs. bill gates is good for capitalism. Viewers of free-market view the government as interfering with microsoft business policies as well crushing adam smiths invisible hand. Judge learned hand says that microsoft has achieved its position through its own efficiency and innovative skill and nothing in the anti-trust laws deprive its business acumen. Now, microsoft introduced a browser -> if left free, consumers decide who to choose (explorer or. Netscape) -> (cid:272)o(cid:374)su(cid:373)ers (cid:449)ill (cid:373)ake their de(cid:272)isio(cid:374) (cid:271)ased o(cid:374) the (cid:271)ro(cid:449)ser(cid:859)s features a(cid:374)d pri(cid:272)e -> gates just wants to leave the decision with the customers. However, microsoft did not want to lose a one-on-one battle in the marketplace -> he decides to package ie with the windows operating system and requires pc manufacturers to purchase it as a package. Microsoft argues that the browser is free but the author disagrees -> consumers will soon or later pay higher prices for the package deal.
