Competition, Innovation, and Antitrust. A Theory of Market ... - Intertic

Contents
xix
5. Antitrust and Abuse of Dominance ....................... 171
5.1 TheTraditionalApproachestoAbuseofDominance ........ 174
5.1.1 TheChicagoSchool .............................. 174
5.1.2 ThePost-ChicagoApproach ....................... 176
5.2 TheTheoryofMarketLeadersandEndogenousEntry ...... 178
5.2.1 Competition in the Market and Policy Implications . . . 179
5.2.2 Competition for the Market and Policy Implications . . 186
5.3 ADigressiononIPRsProtection ......................... 189
5.3.1 PatentsinDynamicSectorsandInnovations ......... 190
5.3.2 Open-SourceInnovations .......................... 191
5.3.3 ConclusionsonIPRsProtection.................... 194
5.4 ReformingAntitrust .................................... 195
5.4.1 EfficiencyDefense ................................ 196
5.4.2 PredatoryPricing ................................ 197
5.4.3 Bundling........................................ 201
5.4.4 IntellectualPropertyRights ....................... 203
5.5 Conclusions............................................ 204
6. Microsoft Economics ...................................... 207
6.1 TheSoftwareMarket ................................... 208
6.1.1 Network Effects .................................. 210
6.1.2 Multi-sidedPlatforms............................. 212
6.1.3 Microsoft........................................ 215
6.2 TheAntitrustCases .................................... 218
6.2.1 TheUSCase .................................... 218
6.2.2 TheEUCase .................................... 221
6.3 IsMicrosoftaMonopolist?............................... 223
6.3.1 WhyIsthePriceofWindowssoLow? .............. 225
6.3.2 Does Microsoft StifleInnovation?................... 228
6.4 Bundling .............................................. 230
6.4.1 Strategic Bundling . . . ............................ 232
6.4.2 TechnologicalBundling ........................... 234
6.5 IntellectualPropertyRights ............................. 235
6.5.1 Patents, Trade Secrets and Interoperability .......... 236
6.5.2 LicensesandStandards ........................... 238
6.6 Conclusions............................................ 240
7. Epilogue .................................................. 243
7.1 EmpiricalPredictionsoftheTheoryofMarketLeaders...... 243
7.2 ImplicationsforBusinessAdministration .................. 252
7.3 ImplicationsforEconomicTheory ........................ 252
7.4 Conclusions............................................ 255
8. References ................................................ 257