econ 426 problems3_spr10

econ 426 problems3_spr10 - engaged in several practices to...

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ECON 426 Fall 2010 Review Questions for “Final Midterm” Topics: Network externalities Microsoft Case Predation and airlines case Review Questions (1) Why do network externalities create “applications barriers to entry” according to the Department of Justice? (2) In what types of industries do network externalities create roles for government standard-setting? (3) The 1998 Department of Justice case against Microsoft alleges that Microsoft
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Unformatted text preview: engaged in several practices to preserve its monopoly power in the market for PC operating systems. Discuss the alleged practices. For each practice, list at least one reason that the practice may have been intended to eliminate competition and at least one reason that the practice might have legitimately provided customers with value. (4) Under what scenarios can one firm price sufficiently low to induce another firm to exit a market?...
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