Microsoft, Antitrust and the New Economy: Selected Essays
No antitrust case in recent history has attracted as much public attention as U.S v. Microsoft Corp. Nor has any antitrust case in memory raised as many complex, substantive issues of law, economics and public policy. Microsoft, Antitrust and the New Econ
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The Milken Institute Series On Financial Innovation And Economic Growth Series Editors James R. Barth Auburn University Senior Fellow at the Milken Institute Glenn Yago Director of Capital Studies at the Milken Institute Other books in the series: Barth, James R., Brumbaugh Jr., R. Dan and Yago, Glenn: Restructuring Regulation and Financial Institutions
MICROSOFT, ANTITRUST AND THE NEW ECONOMY: SELECTED ESSAYS
edited by
David S. Evans National Economic Research Associates, U.S.A.
KLUWER ACADEMIC PUBLISHERS NEW YORK, BOSTON, DORDRECHT, LONDON, MOSCOW
eBook ISBN: Print ISBN:
0-306-47600-2 0-7923-7667-6
©2002 Kluwer Academic Publishers New York, Boston, Dordrecht, London, Moscow Print ©2002 Kluwer Academic Publishers Dordrecht All rights reserved No part of this eBook may be reproduced or transmitted in any form or by any means, electronic, mechanical, recording, or otherwise, without written consent from the Publisher Created in the United States of America Visit Kluwer Online at: and Kluwer's eBookstore at:
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Contents About the Authors Introduction
vii 1
by David S. Evans
Section 1 U.S. v. Microsoft Corp.: The Economics
23
An Analysis of the Government’s Economic Case in U.S. v. Microsoft Corp.
23
by David S. Evans, Albert L. Nichols, and Richard Schmalensee
Why Does Microsoft Charge So Little for Windows?
93
by Bernard Reddy, David S. Evans, and Albert L. Nichols
U.S. v. Microsoft Corp.: Remedy or Malady?
127
by Kenneth G. Elzinga, David S. Evans, and Albert L. Nichols
DOS Kapital: Has Antitrust Action Against Microsoft Created Value in the Computer Industry?
193
by George Bittlingmayer and Thomas W. Hazlett
The Price of Unanimity: The D.C. Circuit’s Incoherent Opinion in U.S. v. Microsoft Corp.
221
by John E. Lopatka and William H. Page
Judicial Misconduct and the Microsoft Case by Leonard Orland
239
Section 2 Antitrust Policy and the New Economy Antitrust and the New Economy
253 253
by David S. Evans
The Rise and Fall of Leaders in Personal Computer Software
265
by David S. Evans, Albert L. Nichols, and Bernard Reddy
The Failure of Structural Remedies in Sherman Act Monopolization Cases
287
by Robert W. Crandall
Economic Perspectives on Software Design: PC Operating Systems and Platforms
361
by Steven J. Davis, Jack MacCrisken, and Kevin M. Murphy
Preserving Competition: Economic Analysis, Legal Standards, and Microsoft
421
by Ronald A. Cass and Keith N. Hylton
The Returns to Investments in Innovative Activities: An Overview and an Analysis of the Software Industry by Josh Lerner
463
About the Authors George Bittlingmayer is the Wagnon Distinguished Professor of Finance at the University of Kansas School of Business, whose research interests include stock market volatility and antitrust. He is an associate editor of the Journal of Corporate Finance. Ronald A. Cass is dean and Melville Madison Bigelow Professor of Law at the Boston University School of Law. From 1988 to June 1990, he served as a member of the
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