Can we measure Microsoft's market power ?
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.
|Date of creation:||2007|
|Date of revision:|
|Publication status:||Published, Communications & Stratégies, 2007, 65, 127-146|
|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/|
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.:
- Demsetz, Harold, 1982.
"Barriers to Entry,"
American Economic Review,
American Economic Association, vol. 72(1), pages 47-57, March.
- 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.
- 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.
- 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.
- Panzar, John C & Rosse, James N, 1987. "Testing for "Monopoly" Equilibrium," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 443-56, June.
- 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.
- George J. Benston & Gerald Hanweck & David B. Humphrey, 1981. "Scale economies in banking: a restructuring and reassessment," Research Papers in Banking and Financial Economics 53, Board of Governors of the Federal Reserve System (U.S.).
- Philippe Gagnepain, 1998.
"Structures productives de l'industrie du transport urbain et effets des schémas réglementaires,"
Économie et Prévision,
Programme National Persée, vol. 135(4), pages 95-107.
- Philippe Gagnepain, 1998. "Structures productives de l'industrie du transport urbain et effets des schémas réglementaires," Post-Print hal-00622819, HAL.
- 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.
- 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.
- repec:cdl:agrebk:677104 is not listed on IDEAS
- 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.
- 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.
- 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.
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 references are entirely missing, you can add them using this form.