No alternative to Windows
Microsoft customers don't believe that they have any serious commercial alternatives
to the Windows operating system, he argued. Moreover, Microsoft has the ability to
raise prices without fearing that its customers will go elsewhere.
Schmalensee had argued that Microsoft's operating systems faced numerous threats
from existing competitors and from unknown developments -- all of which constrained the
company's behavior and pricing.
But Fisher said that notion that a "wolf might come out of the forest" to challenge
Microsoft isn't a serious threat.
"I don't believe that is going to happen and according to a recent Newsweek article,
neither does Mr. Gates," said Fisher, referring a recent column pennned by Microsoft
CEO and Chairman Bill Gates entitled "Why the PC will not die."
Fisher said the possibility of future threats "doesn't prevent Microsoft from having
monopoly power today."