This report analyzes the issues of the current antitrust case against Microsoft from an economic perspective. This report presents the main charges by the Justice Department and Microsoft's defense against these charges. Both the Justice Department's and Microsoft's arguments are then analyzed...

Competition in many important industries centers on investment in intellectual property. Firms engage in dynamic, Schumpeterian competition for the market, through sequential winner-take-all races to produce drastic innovations, rather than through static price/output competition in the market....