You are using a PC? Probably there is a version of Microsoft’s Windows operating system running on it. When Microsoft, nowadays with 90% market share the worlds leading operating system producer [Eisenach/Lenard, 2001], years ago started to develop and to distribute Windows the company applied for a worldwide copyright. Which allows them to be the only supplier of this particular software. Therefore Microsoft is a monopoly in the Windows-market and might be one in the whole operating system market. But Microsoft is more than this. They are also producing completing application programs and tools for the Internet. Question is now whether Microsoft is abusing its market power or not. And how this behaviour might affect consumers. This essay is going to outline how their operating system monopoly arose and if this power is transferred into adjacent markets. It will be tried to be both critically and descriptive with a final statement at the end.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- What is a Monopoly?
- Microsoft's Operating System Monopoly
- Leveraging Market Power
- The "Consumer Argument"
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to analyze Microsoft's operating system monopoly, exploring its origins and whether it leverages this power into other markets. The essay also considers the impact of Microsoft's dominance on consumers and the broader public interest.
- The nature of monopolies and barriers to entry
- Microsoft's market dominance in operating systems
- The "leveraging" theory and its application to Microsoft
- The impact of Microsoft's monopoly on consumers and competition
- The relationship between Microsoft's monopoly and the public interest
Zusammenfassung der Kapitel (Chapter Summaries)
- The essay begins by defining the concept of a monopoly and examining the factors that can contribute to its formation, including high barriers to entry.
- The essay then focuses on Microsoft's operating system, discussing how the company's dominance arose from factors such as high development costs, low replication costs, and network effects.
- The chapter explores the "leveraging" theory, which suggests that firms with a dominant position in one market may use that power to gain dominance in adjacent markets.
- This chapter examines the arguments against Microsoft's actions, specifically focusing on how bundling practices and the integration of Internet Explorer into Windows have stifled competition and potentially reduced consumer choice.
- The essay concludes by considering the arguments for and against Microsoft's monopoly, ultimately suggesting that while Microsoft's monopoly might be theoretically against the public interest, the realities of the market and the benefits of its scale might outweigh this concern.
Schlüsselwörter (Keywords)
This essay primarily focuses on the concepts of monopoly, market dominance, leveraging, consumer choice, public interest, and the impact of technological advancements on competition. It explores these themes through the lens of Microsoft's operating system and its alleged monopolistic practices.
- Quote paper
- Michael A. Braun (Author), 2003, Microsoft is a Monopoly, which operates against the Public Interest?!, Munich, GRIN Verlag, https://www.grin.com/document/116897
