Microsoft's Monopoly

Paper Summary:

This paper discusses the concepts of monopolies in the modern industrial age and how monopolies and trusts have long come under fire from government regulators. In particular it examines how and why Microsoft is one of the latest companies to struggle against possible government intervention. It also analyzes whether Microsoft should be considered a monopoly or an oligopoly.

Outline
Analysis
Pricing Strategy
Problems with Oligopolies
Effects of the Breakup
Conclusion

From the Paper:

"The Justice Department argued that Microsoft is a monopoly in part because of the company's pricing strategy, particularly as this strategy applied to the company's Internet browser. In that market, Microsoft competed with Netscape, which was the dominant browser at the time that Microsoft came into the market. Microsoft started "bundling" its browser with its operating system (Windows) which essentially reduced the price of the browser to zero--customers received the browser when they purchased Windows regardless of whether they wanted the browser or not. According to Netscape, there was now no reason for anyone to purchase Netscape's browser, which certainly fit the concept of predatory pricing."

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