The Microsoft Antitrust Case

The Microsoft Antitrust Case

A Case Study For MBA Students

by Nicholas Economides* September 2000

* Stern School of Business, New York University, New York, NY 10012, (212) 9980864, fax (212) 995-4218, http://www.stern.nyu.edu/networks/, neconomi@stern.nyu.edu Copyright ©, N. Economides

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Contents

1. 2. 3. 4. 5. 6. 7. 8. 9. Facts........................................................................................................................................................ 3 Antitrust Law On Monopolization And Attempting To Monopolize ..................................................... 7 Economics Of Markets With Network Effects ....................................................................................... 8 The Issue Of Low Prices....................................................................................................................... 11 DOJ's Monopolization Theory.............................................................................................................. 14 Effects On Consumers .......................................................................................................................... 16 Further Reading .................................................................................................................................... 18 Questions For Students ......................................................................................................................... 19 References............................................................................................................................................. 20

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The Microsoft Antitrust Case

This case is intended as a teaching tool. It presents essential aspects of the Microsoft case, but is not exhaustive. It rather pays special attention to aspects of the case that are best to illustrate key concepts to students. For a more comprehensive study of all aspects of the case including a full discussion of...