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A Monopolist Would Still Charge More for Windows: A Comment on Werden
Authors:Reddy  Bernard  Evans  David  Nichols  Albert  Schmalensee  Richard
Affiliation:(1) Research Institute of Industrial Economics (IFN), Stockholm, Sweden
Abstract:Even when heterogeneity of demand for computers is taken into account, Microsoft's pricing of Windows is inconsistent with the government's claim that Windows is a monopoly, protected by high entry barriers. Werden's claim to the contrary rests on confusion between local and global maxima and on his use of assumptions about thePC market that are demonstrably false.
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