Using Leverage to Preserve Monopoly: Discussion of Katz and Shapiro Paper
Posted: 8 Jul 1998
Date Written: May 1998
This paper is a conference discussion of the Katz and Shapiro article "Antitrust Analysis of Software Markets," as part of a recent Progress and Freedom Foundation Conference titled, "Competition, Convergence and the Microsoft Monopoly." The paper analyzes some aspects of exclusionary vertical conduct and applies that analysis to the Microsoft-Netscape "browser wars" and the Microsoft-Sun "Java wars." The main issue stressed is the applicability of the single monopoly profit theory to monopoly leveraging allegations. in the examples, monopoly leveraging into a second market may be a rational anticompetitive strategy to preserve or enhance the firm's monopoly power in the first product.
JEL Classification: K21, L43, L86
Suggested Citation: Suggested Citation