Michael Perelman wrote

> The problem is twofold.
> 
> Tying the products is cheaper IF you want to buy all or most of the
> products.

Sure, but the logic required to seamlessly look at the Internet as 
part of your file system, which does much of the work of a browser 
bar the user interface, seems a rational thing to build into an 
operating system. I wouldn't use the same argument for a word 
processor for example (though building some of the common functions 
used by a word processor into the operating system might be useful, 
and is done). I believe it is this kind of issue involved in the 
current Windows 98/Internet Explorer show-down: not simply bundling 
IE with Win 98.

> 
> The larger problem is that Microsoft wants to control the pipeline. 
> It wants to be able to collect something from all the transactions
> [including the consumption of intellectual property].  They call
> this, vig, a gambling term.  Ultimately, that is the danger.

Yes, I had missed that one. That sounds like a case for regulation or 
public ownership in that even if MS's browser was separated from 
Windows, its market share would still enable it to control a 
substantial part of the pipeline because of its market dominance via 
Windows, and its ability to write applications for Windows more 
effectively using undocumented features.

Bill

> 
> 
> 
> Bill Rosenberg wrote:
> 
> > That is getting to the heart of the matter. From a user's point of
> > view, having the browser integrated with the operating system makes
> > very good sense, as long as there are ways to install competing user
> > interfaces. Forcing MS to sell it separately will increase
> > user costs, not reduce them, and probably lead to a more clunky
> > system. What is needed is sufficient regulation or public ownership
> > of these key assets such that they can't be used for profiteering or
> > cutting out the competition. Anti-trust actions don't really attack
> > the problem, if they end up splitting up what should be an
> > integrated system, and keeping these bits of software together is an
> > advantage. I don't have great faith in the long-term effect of
> > anti-trust actions to boost competition in any case.
> 
> --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
> 
> Tel. 916-898-5321
> E-Mail [EMAIL PROTECTED]
> 
Bill Rosenberg, Deputy Director, Computer Services Centre
University of Canterbury, Private Bag 4800, Christchurch, New Zealand
[EMAIL PROTECTED] Ph 64 3 3642801. Fax 64 3 3642332. 
Room 211, Ext 6801



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