Book Reviews


[Day Permalink] Friday, April 20, 2007

[Item Permalink] Monopolists and new markets -- Comment()
When a monopolist decides to sell their product for cheap - at 1/10 or 1/100 of the normal price - to gain new markets, what should be done? This manouver will prevent alternative products from developing, and thus will make it possible for the monopolist to raise prizes to the normal level later on. If this would happen within any normal industry, a great deal of outcry would result. But within information technology things are different, as demonstrated by Microsoft aims to double PC base: "Microsoft software will sell for just $3 in some parts of the world in an attempt to double the number of global PC users." [BBC News | Technology | UK Edition]