Powers of a Monopolistic Anarchy Essay example -- Essays Papers

Powers of a Monopolistic AnarchyWhile the Microsoft Empire maintains its status as a vast company of large-scale production, readily contributing to the national GDP, and yielding high interest and profits to its associates, criticism and controversial accusations keep mounting. The thought of a monopoly as the economic pull for good business seems almost mind-boggling to Microsofts competing corporations, as well as the entire economic community, legal and commercial. Why is monopoly such an undesirable approach pattern? Why does the Microsoft Monopoly, in particular, violate the antitrust laws, and how far ought the government go in its efforts to regulate and fight such monopoly. What are the economic crimes that Microsoft is guilty of? Is it, in fact, true when the critics argue that, Microsoft gained its dominance over 20 years... which ended with a virtual barrier to entry for rival operating system software markets (The Making of a Monopoly). Is it true that Microsoft has eliminated all of its concurrent competition, and stabilized its exponent to the extent of a complete monopoly. Or is there perhaps a validation for Microsofts practices in the saying that everything is fair in business.Two Theories of MonopolyBefore mentioning the strength of Microsofts influence on domestic, as well as the foreign economy, it is crucial to image the significance of a monopoly, and how it relates to a countrys fiscal structure. According to Websters dictionary, a monopoly is the exclusive ownership and control of a commodity or service in a given market (Websters Dictionary 337). Predictably, thought, there are degrees of control, and thus degrees of monopoly. The economic theory separates the idea of a mono... ...ectly change the consumers. Perhaps the best solution to Microsofts authority would include structural remedies, such as the divestiture remedy, which may be less subject to gaming, but go down the risk of substantial costs. However, other sources suggest that the most effective remedy may be that the governments victory eases the way for plaintiffs in clubby antitrust suits to collect monetary damages, which could be sufficient to deter future anticompetitive conduct (Journal of Economic Perspectives). Whatever the approach to resolving this issue may be, it is sealed that the Microsoft monopoly can no longer enjoy its precedent benefits. Nonetheless, there remains a grand possibility that Microsoft will be able to maintain its power to at least some extent, due to the fact that their products are needed, and their competition remains inadequate.