Does the state have the right to consider Microsoft to be a monopoly?

Authors
Citation
L. Lizal, Does the state have the right to consider Microsoft to be a monopoly?, POLIT EKON, 49(4), 2001, pp. 547-558
Citations number
5
Categorie Soggetti
Economics
Journal title
POLITICKA EKONOMIE
ISSN journal
00323233 → ACNP
Volume
49
Issue
4
Year of publication
2001
Pages
547 - 558
Database
ISI
SICI code
0032-3233(2001)49:4<547:DTSHTR>2.0.ZU;2-N
Abstract
This article deals with computer operating systems, their common features w ith classical monopolistic industries containing a natural monopoly element , and the right of the state to regulate monopolies according the philosoph ic principles of utilitarianism and laissez-faire. An analogy between opera ting system and infrastructure of network industry is presented. Fixed cost s of building an infrastructure and the writing of a program are similar; t hey are indivisible and sunk. The marginal costs of maintaining the infrast ructure and program licensing are low. Operating systems bear all identical features that define natural monopolies. The owner of an operating system can practice all kinds of predatory behavior known in oligopolistic industr ies. Therefore, we can consider operating system to be equivalent to monopo listic infrastructure and the society has a right to examine the behavior o f the owner according the definitions of anti monopolistic laws and anticom petitive behavior.