software such as word processing and spreadsheets into a single "bundle") (DeVoney, 1997, p. 83). The dominant firm model of oligopoly suggests that the leader in the market (Microsoft in this case) assumes competitive behavior on the part of its competitors (Lotus, for example) which seems to accurately describe the productivity software market at this point (Browning & Browning 345). Thus Microsoft will make marketing decisions based on competitive behavior on the part of Lotus and others, and Lotus will make its decisions based on competitive assumptions about Microsoft and the others in the market.
The office productivity market provides a good example of the oligopoly structure of the market. Several so-called office suites are now available, including SmartSuite by Lotus and Office by Microsoft. These suites combine word processing and spreadsheets with a variety of other components which may vary depending on the combination selected by the user. Thus a user of Microsoft Office might choose the package which includes Word and Excel (word processing and spreadsheet programs which are found in all Office options) along with Power Point (presentation software) and Access (a database management program). Or, a user might choose Microsoft Publisher instead of Access if there is greater need for a desktop publishing program instead of a database manager. Regardless of which vendor or component combination is selected, users can share information across the various applications within the suite, and can quickly switch from one suite application to another using shortcuts and toolbars (DeVoney, 1997, p. 83).
The Justice Department argued that Microsoft is a monopoly in part because of the company's pricing strategy, particularly as this strategy applied to the company's Internet browser. In that market, Microsoft competed with Netscape, which was the dominant browser at the time that Microsoft came into the market. Micros...