(Answered) 1 in the toys r us case described in the chapter opener

Management Studies

1. In the Toys "R" Us case described in the chapter opener, do you think that the antitrust problem is created more by horizontal agreements or vertical agreements?

2. Discuss the following issues arising from the 1998 Microsoft case.

(a) How would you go about establishing whether Microsoft possesses market power in the relevant antitrust market?

(b) What is the competitive price for PC operating systems?

(c) How would you decide whether Microsoft tied its Web browser to the Windows operating system for efficiency reasons or in order to eliminate competition?

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