Winners, Losers, and MicrosoftBy: Stan J. Liebowitz and Stephen E. Margolis

Presentation By: Dylan Swaebe

Summary

Talks about the business and economics side of the technological world

Battles between rival firms

Copyright laws, marketing strategies, actual quality of products

Published in 1999

Companies include Apple, Microsoft, Sony, and RCA

Products include type writers, VHS tapes, word processors, and office suites

Networked World

“A particular type of network effect occurs in as technology develops. As more firms or households use a technology, there is a greater pool of knowledge for users to draw upon.”

Establishment of standards

Theory of Lock-In

Keyboards

Microsoft

Serial Monopoly

Industry is in constant monopoly, but not always dominated by the same company or product

Smartphones

Promotes Innovation

“In a world of strong network effects, all competition is monopolization, though perhaps short-lived monopolization.”

VHS Tapes

Sony had prior partnership with RCA and they shared patents

Had a product similar to VHS called Betamax

Ended partnership

Sony was first to the market

Microsoft

Computer market was dominated by Apple

Developed Microsoft Windows

Allowed PC’s to run as many applications as you wanted at once

Office suites