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Economic Issues in U.S. V. Microsoft

This paper discusses the economic issues involved in the government's case against Microsoft. In particular, we examine the competitive effects of Microsoft's contractual restrictions, including the bundling of its Internet browser with the Windows 98 operating system in agreements with computer manufacturers (also called Original Equipment Manufacturers or OEMs), online services providers (OLS), Internet service providers (ISP) and Internet content providers (ICP). A secondary purpose is to review and critique the economic evidence presented by Microsoft in support of its contention that its behavior is not characteristic of a monopoly.