Advanced Search
MyIDEAS: Login to save this paper or follow this series

Can we measure Microsoft's market power ?

Contents:

Author Info

  • Christian Genthon

    ()
    (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - CNRS : FRE2664 - Université Pierre Mendès-France - Grenoble II)

Registered author(s):

    Abstract

    This paper has the objective of measuring the market power of Microsoft in the software industry. We develop a two tier arguent. Firstly we estimate the scale economies within the industry. We then make the crude hypothesis that a firm's success in this industry is linked to its size, based on the scale argument. We modelise these assumptions and then compare the expected profits and actual profits genereted by Microsoft. The results tend to show that Microsoft has posted profits in excess of those that such a firm is expected to benefit from if it does not have market power.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://halshs.archives-ouvertes.fr/docs/00/15/38/37/PDF/pub07009-NT-47-2007.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00153837.

    as in new window
    Length:
    Date of creation: 2007
    Date of revision:
    Publication status: Published, Communications & Stratégies, 2007, 65, 127-146
    Handle: RePEc:hal:journl:halshs-00153837

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00153837/en/
    Contact details of provider:
    Web page: http://hal.archives-ouvertes.fr/

    Related research

    Keywords: software industry ; scale economies ; Microsoft;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Philippe Gagnepain, 1998. "Structures productives de l'industrie du transport urbain et effets des schémas réglementaires," Post-Print hal-00622819, HAL.
    2. Pleatsikas, Christopher & Teece, David, 2001. "The analysis of market definition and market power in the context of rapid innovation," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 665-693, April.
    3. Micha Gisser & Mark Allen, 2001. "One Monopoly Is Better Than Two: Antitrust Policy and Microsoft," Review of Industrial Organization, Springer, vol. 19(2), pages 211-225, September.
    4. repec:cdl:agrebk:677104 is not listed on IDEAS
    5. Harold Demsetz, 1981. "Barriers to Entry," UCLA Economics Working Papers 192, UCLA Department of Economics.
    6. Gregory Werden, 2001. "Microsoft's Pricing of Windows and the Economics of Derived Demand Monopoly," Review of Industrial Organization, Springer, vol. 18(3), pages 257-262, May.
    7. Panzar, John C & Rosse, James N, 1987. "Testing for "Monopoly" Equilibrium," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 443-56, June.
    8. Frances A Katrishen & Nicos A Scordis, 1998. "Economies of Scale in Services: A study of Multinational Insurers," Journal of International Business Studies, Palgrave Macmillan, vol. 29(2), pages 305-323, June.
    9. Bernard Reddy & David Evans & Albert Nichols & Richard Schmalensee, 2001. "A Monopolist Would Still Charge More for Windows: A Comment on Werden's Reply," Review of Industrial Organization, Springer, vol. 18(3), pages 273-274, May.
    10. James M MacDonald & Michael E Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," Working Papers 00-03, Center for Economic Studies, U.S. Census Bureau.
    11. Benston, George J & Hanweck, Gerald A & Humphrey, David B, 1982. "Scale Economies in Banking: A Restructuring and Reassessment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(4), pages 435-56, November.
    12. Baumol, William J, 1996. "Predation and the Logic of the Average Variable Cost Test," Journal of Law and Economics, University of Chicago Press, vol. 39(1), pages 49-72, April.
    13. Benjamin Klein, 2001. "The Microsoft Case: What Can a Dominant Firm Do to Defend Its Market Position?," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 45-62, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00153837. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.