A Monopolist Would Still Charge More for Windows: A Comment on Werden |
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Authors: | Reddy Bernard Evans David Nichols Albert Schmalensee Richard |
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Affiliation: | (1) Research Institute of Industrial Economics (IFN), Stockholm, Sweden |
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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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