This website uses cookies to ensure you have the best experience. Learn more

Is Microsoft A Monopoly? How Has Microsoft's Monopoly Affected Consumers?

3004 words - 12 pages

Economics (Markets) 503 David Luong Regulation & Anti-trust Policy Assignment 12978652
ECONOMICS (MARKETS) 503Semester 2, 2005Assignment Cover SheetName: David LuongStudent ID: 12978652Tutor's Name: Mr. GurribDay & time of tutorial: Wednesday 5:30 pmDate submitted: 13 October 2005Your assignment should meet the following requirements.Please confirm this (by ticking boxes) before submitting your assignment.( Assignment is word processed and double-spacedN/A Copy of media article showing date and source is attached( Pages have been consecutively numbered and identified( An electronic copy of the assignment has been retained by me( Spell-check has been conducted and corrections made( Assignment has been appropriately referenced( Word Count 2518( Declaration below is completeAll forms of plagiarism, cheating and unauthorized collusion are regarded seriously by the University and could result in penalties including failure in the course and possible exclusion from the University. If you are in doubt, please contact your lecturer, Unit Controller, or your Course Coordinator.DeclarationExcept where I have indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another Unit or course. I warrant that any diskettes and/or computer files submitted as part of this assignment have been checked for viruses and reported clean.________________________________________21.0 Is Microsoft a Monopoly? 21.1 The Relevant Market 21.2 Market Share 31.3 Barriers to Entry 41.4 Availability of Substitutes 52.0 Has Microsoft Exploited its Monopoly Power? 52.1 Restrictive Licensing Agreements with Original Equipment Manufacturers (OEM) 62.2 Bundling Internet Explorer with the Windows Operating System 72.3 Bundling Windows Media Player with the Windows Operating System 72.4 Limiting Connection for Windows NT Workstations 93.0 How Microsoft's Monopoly Power Affects the Market and its Consumers 93.1 Higher Prices 103.2 Inefficient Allocation 103.3 Inhibits Technological Progress 113.4 Denial of Choice and Impairment of Quality 113.5 Deteriorates Web Security 124.0 Conclusion and Recommendation 145.0 Reference List 1.0 Is Microsoft a Monopoly?A monopoly exists when a firm is able to control to a degree the competitive environment in which all the other firms operate. The monopoly firm's actions will shape the market outcome without the consent of the other competitors (White, 1983). The relevant market in which the firm in question operates needs to be identified before it can be ascertained if that firm holds any monopoly power. After the relevant market is identified, the market share of the firm, the barriers of entry into the market, the substitutes for the product and the pricing behaviour are examined.1.1 The Relevant MarketThe relevant market in which Microsoft operates is determined to be the PC operating systems and applications market.1.2 Market ShareThe first step to determine whether a firm has...

Find Another Essay On Is Microsoft a Monopoly? How has Microsoft's Monopoly affected consumers?

The Microsoft Monopoly Essay

1650 words - 7 pages /WinHistoryProGraphic.mspx, 24 January 2004. Newman, Nathan, “From Microsoft World to Microsoft World: How Microsoft is Building a Global Economy,”, 20 January 2004. Salsman, Richard. The Microsoft Defense Site. 24 January 2004. The Washington Post, “The Making of a Monopoly”, 24 January 2004.

The monopoly of Microsoft Essay

598 words - 3 pages Considering the fact that Microsoft has a monopoly over the entire IT industry, one ponders how it got to this stage.In the bustling industry of IT, it is undoubtedly clear that a company like Microsoft wouldn't have reached where it is today without trading more than its fair share of blows.Since the opening of a string of court cases against the IT giant, Microsoft's misdemeanours have been revealed.But when it comes to what consequences the

Antitrust Laws and whether or not Microsoft is a monopoly. Usa v. Microsoft plus bibliography

1074 words - 4 pages highest possible amount of money for its product. The major difference between a monopoly firm and one in a competitive industry is that the monopoly will have greater control over the price it charges for the product, even though this control is never absolute. The monopoly firm has more freedom than a competitive firm to adjust price as well as production in order to achieve a max profit.In 2000 the Computer systems software mogul Microsoft had

Microsoft: Entrepreneurial Success or Monopoly?

2280 words - 9 pages Since 1990, a battle has raged in United States courts between the United States government and the Microsoft Corporation headed by Bill Gates. What is at stake is money. The federal government maintains that Microsoft's monopolistic practices are harmful to United States citizens, creating higher prices and potentially downgrading software quality, and should therefore be stopped, while Microsoft and its supporters claim that they are not

United States v. Microsoft Corporation: Microsoft’s Abusive Practices Towards Becoming a Monopoly

988 words - 4 pages industry and in the mid 1980’s, Microsoft dominated the personal computer operating system business with their revolutionary MS-DOS, followed by the Microsoft Windows. Since the 1990’s and onwards, Microsoft has gradually expanded from the operating system market and has delved into the acquisitions of other corporations such as in 2011 when they bought Skype Technologies, a telecommunications corporation for $8.5 billion. Microsoft is currently

“Monopoly Power Exploits Consumers And Misallocates Resources. Therefore, Natural Monopoly Industries Should Not Have Been Privatised.” Discuss

1722 words - 7 pages product is price inelastic because consumers have no choice. The company therefore may to some extent produce the quantity it likes and sets the market price. An example of a monopolistic company would be Microsoft. They have a stranglehold on the market of computer software and it was accused that Microsoft had used its monopoly power to create software that encouraged exclusive use of only Microsoft software. The claim, brought about last year

Economics of a Monopoly

1412 words - 6 pages on the theory and economics of a monopoly. Section 2 will discuss with a recent case of monopoly, as in the web search engine company- Google, whose real repercussion is still not clear to most consumers. Finally this essay will conclude with the outlook on how world markets are opening up to each other and how competition and new government policies are restraining the growth of monopolies and their incessant power. 1 Theory and Economics of

Postal Service As a Monopoly

1174 words - 5 pages publicon account of various reasons. The United States Postal Service is oneof them and since the Postal Service is a monopoly, it is its ownmarket. This paper will discuss the budget dilemmas that the postalservice has faced for the past twenty years and if it is in the bestinterest of the economy for the United States Postal Service to continueas a monopoly.The first time there was talk of privatizing the Postal Service wasin1979 when the Postal

Why is monopoly 'harmful? How can regulation ameliorate these harmful effects? What problems confront the regulators?

828 words - 3 pages In order to deduce that a monopoly is 'harmful', there must be another market system which is preferable to monopoly so as to offer greater benefits to the public. A monopoly can therefore be compared to perfect competition. If the benefits of perfect competition outweigh the benefits of monopoly then a monopoly can be regarded as 'harmful' since the consumers are not receiving the maximum possible utility for their purchases.Monopolies are

Televisa as a Monopoly in Mexico

1049 words - 5 pages Latin America but also in the US and in many parts of the entire world. This Company is a really big monopoly that at the end gives the entry to other monopolies; choosing what, how, and when to share this information. For that the television it´s a great option to establish their domain. Televisa has not just control of the broadcast television media; because many years ago they were involved in the pay Television with firms such as Sky

Privatizing a State Run Natural Monopoly

1928 words - 8 pages individual ownership of capital. However, it is extremely difficult to prove whether this has been happening actually. Base on those arguments, privatization has resulted in the transfer of public sector monopolies into private hands. Therefore, Attention must be focus on the control of such industries, in order to avoid the exploitation of consumers. Nevertheless, there has been a sharp increase in the

Similar Essays

Microsoft: Thank Goodness It Is A Monopoly

660 words - 3 pages unchanged, at least as a whole - the Internet. The government has given exclusive rights to retain a monopoly to safeguard all information on the internet. This is an example of a natural monopoly created by the government, for Network Solutions, Inc. This should be done in the operating system industry too to reveal us of buying and bookkeeping different software and floppies. If Microsoft is shattered today then tomorrow there will be another major

Microsoft Monopoly Essay

902 words - 4 pages . Globally there are bigger companies that have more of the global market. I don't feel the government has the right to tell Microsoft how it can or cannot configure its own software. Once Windows is installed, consumers have the option of disabling as much of Windows as they like. If you don't like Explorer, disable it and get Netscape for free. Washington should not be able to get in the way of a successful company over Microsoft's right to include their free software with their own program.

Microsoft Monopoly Essay

1642 words - 7 pages keep such specifications private, to give a competitive advantage to its many software departments, that would be the company's privilege. It does own the operating system, after all".This is clearly the case of using their monopoly in one market to attempt to monopolize another market, and should clearly be forbidden.A FEW OTHER EXMPLES...Let us give you a few strong examples of how Microsoft plays hardball with Netscape. Microsoft's 10-connection

Microsoft Monopoly Essay

645 words - 3 pages the findings, Government lawyers said they would consider proposals to break up the company.In Microsoft's defense, citing a 1990 ruling from the 4th circuit appeals court, Microsoft claims that "a desire to increase market share or even drive a competitor out of business through rigorous competition on the merits is not sufficient" to prove it intended to establish an illegal monopoly.An important point in Microsoft's argument is the copyright law