Microsoft's Pricing of Windows and the Economics of Derived Demand Monopoly View Full Text


Ontology type: schema:ScholarlyArticle     


Article Info

DATE

2001-05

AUTHORS

Gregory J. Werden

ABSTRACT

The economic experts in the Microsoft case debated whether Microsoft's pricing of Windows was consistent with Microsoft having a monopoly over personal computer (PC) operating systems. In this debate, PCs were treated as a single homogeneous commodity. This paper demonstrates that PC heterogeneity is likely to reduce substantially the monopoly price of Windows. The reason is that low-end PCs, which surely have the more elastic demand, are of disproportionate importance in determining the elasticity of derived demand for Windows. More... »

PAGES

257-262

Identifiers

URI

http://scigraph.springernature.com/pub.10.1023/a:1007859017076

DOI

http://dx.doi.org/10.1023/a:1007859017076

DIMENSIONS

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