Preserving Monopoly: Economic Analysis, Legal Standards and Microsoft

George Mason Law School Antitrust Symposium

Posted: 29 Oct 1998

See all articles by R. Craig Romaine

R. Craig Romaine

Charles River Associates

Steven C. Salop

Georgetown University Law Center

Date Written: October 1998

Abstract

This paper examines a number of issues in the economics and law of leverage and monopolization through the lens of the Microsoft case. The paper explains how Microsoft's practices can be divided into two categories -- exclusivity and incompatibility. This exclusionary conduct has the effect of preserving its operating system monopoly from the threat of competition, a characterization which does not violate the single monopoly profit theory. After carrying out an economic analysis of this exclusionary conduct, the paper then uses a decision theoretic approach to evaluate alternative legal rules for governing such alleged monopolizing conduct.

JEL Classification: L12, L86

Suggested Citation

Romaine, Robert Craig and Salop, Steven C., Preserving Monopoly: Economic Analysis, Legal Standards and Microsoft (October 1998). George Mason Law School Antitrust Symposium. Available at SSRN: https://ssrn.com/abstract=138222

Robert Craig Romaine

Charles River Associates ( email )

1201 F Street, N.W.
Suite 700
Washington, DC 20004
United States
202-662-3814 (Phone)
202-662-3910 (Fax)

Steven C. Salop (Contact Author)

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States
202-662-9095 (Phone)
202-662-9497 (Fax)

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