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Microsoft Monopoly - Term Paper Example

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The paper 'Microsoft Monopoly' presents the name Microsoft which was probably coined from microcomputer software and refers to a worldwide corporation that primarily started as a personal computer (PC) software development corporation for IBM-and-compatible microcomputers…
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Microsoft Monopoly
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Extract of sample "Microsoft Monopoly"

Download file to see previous pages The corporation is currently boasting of a plethora of products and software useful in the world of informatics and computing as cited by Page and John (2009). In spite of this colorful and robust growth attributed to Microsoft, critics argue that the playing field has been lopsided in favor of Microsoft. It is from this argument that the author intends to establish whether Microsoft has monopoly power in the markets for personal computer operating systems and whether this power has been maintained by using anti-competitive practices. The essay is divided into the sections discussed hereunder.
From the economics perspective, monopoly is taken to refer to “a market in which there are many buyers but only one seller” (Garry, 1990). In a monopolistic situation, the seller is usually at liberty to assign any price to the products on offer as propounded by Craig and Steven (1999). Elsewhere, Bill (2004) has defined monopoly as “the exclusive possession or control over something”. A number of arguments have stipulated that there is a lot of dominance when one organization possesses the monopoly of a certain commodity. Although this proposition has highly been contested, certain preconditions justify the situation. Consider the following situation for instance. When one company is the sole provider of a particular product or has a very large portion of it and therefore controls most of its usage, then that company is said to wield a lot of monopoly power. In line with this observation, it can be concluded that “monopoly is the dominant owner of a thing in which one has a severe influence over its usage including even the portion owned by others” (Garry, 1990). Economists across the globe have concurred that a big characteristic of monopoly is the scarcity of the item in question.
In view of the foregoing definition, the current author takes on the real Microsoft monopoly. There is no doubt that Microsoft has a monopoly in Intel PC Operating Systems and other micro-computing applications. ...Download file to see next pages Read More
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