Breakup Of Microsoft

Paper Summary:

Discusses microeconomic effects of breaking up Microsoft. Microsoft as a monopolistic company. Its oligopoly market structure. Expansion of Microsoft. Analysis of the market in which Microsoft competes. Competition within that market.; Netscape. Pricing strategy. Justice Department ruling. Dividing Microsoft into two different companies (operating systems and applications software).

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"Introduction
The modern industrial age has given rise to companies which span international borders and which can employ hundreds of thousands of individuals. There are considerable profits to be made in this global environment, and companies often seek to become as large as possible in order to realize economies of scale as well as pose significant competition to others. Monopolies and trusts have long come under fire from government regulators, and Microsoft is only the latest company to struggle against possible government intervention. But it is not always clear what the long-term ramifications of breaking up large monopolies will be. For example, the breakup of Standard Oil resulted in several large oil companies, including Exxon and Mobil, which are now considering mergers with other oil companies. This research ..."

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