"The Microsoft monopoly should be broken up." Evaluate this claim using economic theory and evidence on the welfare effects of monopoly and competition.

In the United States, monopoly policy has been built on the Sherman Antitrust Act of 1890. This prohibited contracts or conspiracies to restrain trade or, in the words of the later Clayton act, to monopolise commerce. The claim that a company should be broken up is clearly not a new concept in America. In the early 20th century this law was called upon to reduce the economic power wielded by so-called "robber barons," such as JP …

…not be split and, after looking at many of the arguments, agree with this decision. Bibliography Pindyck, R.S, Rubinfeld, D.L (2001) Microeconomics, London, Prentice Hall Pass, C.J, Sparkes, J (1980) Monopoly, High Wycombe, Castlefield Press Robinson, E.A.G, (1941) Monopoly, Cambridge, University Press Sloman, J (2000) Economics, London, Prentice Hall Tracinski, R.W, Microsoft Breakup is a Throwback to Socialism, @ www.capitalismcenter.org Friday 29th June, 2001. Microsoft break-up ruling overturned, @ www.bbc.co.uk/news