PROBLEM SET 2Read the case “Microsoft on Trial” in the case packet and respond to the case question(s) below.

You are welcome to discuss the case as a group, but each person must write their own response. Responses that are identical will not receive credit.

Based on your reading of the case, respond to the following question(s):

Pick one of the three pieces of conduct above and discuss whether the conduct goes “beyond what would be expected of firms competing fairly on the merits of their products and costs?”

1. (a) Does Microsoft have a “dominant market position in the relevant product market”?
2. (b) Microsoft participates in a variety of conduct alleged to be anti-competitive including: (a) bundling Windows 98 and Internet Explorer, (b) distributing Internet Explorer for free, and (c) using other Microsoft products (e.g., Windows 95 and Office) as chips when bargaining with Compaq, AOL and Apple.
3. (c) If Microsoft is found to have violated the Sherman Act, what remedy(ies) would you advocate? Explain.