Using Leverage to Preserve Monopoly: Discussion of Katz and Shapiro Paper

Posted: 8 Jul 1998

See all articles by Steven C. Salop

Steven C. Salop

Georgetown University Law Center

Date Written: May 1998

Abstract

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

Salop, Steven C., Using Leverage to Preserve Monopoly: Discussion of Katz and Shapiro Paper (May 1998). Available at SSRN: https://ssrn.com/abstract=91028

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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