UNTANGLING THE KNOTS IN MICROSOFT JUDGE'S "TYING" ARGUMENT

Microsoft trial judge Thomas Penfield Jackson complained that the
software maker is guilty of illegally "tying" together two products:
its Explorer Web browser and its operating system. But Jackson's
argument is itself an example of improper tying, says economist
Stephen Margolis of the Independent Institute in a new op-ed. It
weaves together "old economics" antitrust decisions and prevalent
misconceptions about "new economy" competition into a ball of twisted
logic.

"Judge Jackson's reading of [prior antitrust cases] Jefferson Parish
and Eastman Kodak give us an approach to new-product development that
will serve us poorly in the new century," writes Margolis.
"Ratification of a rule that hinders [product integration] will give
us less innovation, not more."

For Stephen Margolis's article, see
http://www.independent.org/tii/lighthouse/LHLink2-22-1.html.

To hear Stephen Margolis on National Public Radio's "Talk of the Nation", go to
http://www.independent.org/tii/lighthouse/LHLink2-22-2.html
(Margolis appears about 15 minutes into the 45-minute segment).

For information about WINNERS, LOSERS & MICROSOFT, by Stan Liebowitz
and Stephen Margolis, see
http://www.independent.org/tii/lighthouse/LHLink2-22-3.html.

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Excerpted via THE LIGHTHOUSE
"Enlightening Ideas for Public Policy..."
VOL. 2, ISSUE 22
June 13, 2000

http://www.independent.org

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