A monopolist would still charge more for windows: A comment on Werden

Authors
Reddy, B Evans, D Nichols, A Schmalensee, R
Citation
B. Reddy et al., A monopolist would still charge more for windows: A comment on Werden, REV IND ORG, 18(3), 2001, pp. 263-268
Citations number
4
Categorie Soggetti
Economics
Journal title
REVIEW OF INDUSTRIAL ORGANIZATION
ISSN journal
0889938X → ACNP
Volume
18
Issue
3
Year of publication
2001
Pages
263 - 268
Database
ISI
SICI code
0889-938X(200105)18:3<263:AMWSCM>2.0.ZU;2-#
Abstract
Even when heterogeneity of demand for computers is taken into account, Micr osoft's pricing of Windows is inconsistent with the government's claim that Windows is a monopoly, protected by high entry barriers. Werden's claim to the contrary rests on confusion between local and global maxima and on his use of assumptions about the PC market that are demonstrably false.