Monopoly over operating systems

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Reference no: EM137497

Q. DB - Does Microsoft Have a Monopoly Over Operating Systems?:

Former Dean of the Sloan School of Management at Massachusetts Institute of Technology is Professor Richard Schmalensee, while it may have a large market share, is not acting like a monopolist. In scrupulous, it is not exercising its market power. His basic argument is that the present cost of Windows 98, of around US$200, is far less than the cost Microsoft could charge if it did, indeed, have a monopoly over operating systems (OS).

Microsoft emerges to have a monopoly with over 90% of the personal Calculator operating market. Why then would it not be charging a monopoly cost? What factors might be diluting its market power?

See if you can come up with good rationales for Microsoft's lower than expected windows pricing.

Reference no: EM137497

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