Beer markets – and Microsoft
Posted by Graeme in Economics at 12:05 pm on Monday, 14 March 2005
My dissatisfaction about the beers that a golf club bar stocks started me thinking about what gives a firm monopoly power in the absence of any apparent reason. Unlike in software there are no apparent network effects, a dominant player has little leverage to bias distribution channels and switching costs for consumers are zero. So how can an inferior product (and I am firmly convinced it is inferior) continue to dominate the market? (more…)
Feed