Journal of the Royal Statistical Society: Series A (Statistics in Society)

Measuring the usage effects of tying a messenger to Windows: a treatment effect approach

Journal Article

Summary.  The US case on tying Microsoft Internet Explorer to Windows has received much attention. In Europe, a similar case of tying the Microsoft media player to Windows appeared. Recently in Korea, another similar case of tying a Microsoft messenger to Windows occurred. In the messenger tying case (as well as in the other tying cases), Microsoft's main defence seems to be threefold: tying enhances efficiency, the Microsoft product is better or better marketed and tying is inconsequential because the user can easily download free competing products. The paper empirically addresses the third point. Korean data, used as evidence in the trial of the case, reveal that tying the Microsoft messenger to Windows increased the probability of choosing the Microsoft messenger as the main messenger by 22% for Windows Millennium and 35% for Windows XP. There is also evidence that tying shortened the duration until the Microsoft messenger is adopted by about 2–4 months, compared with the duration until the adoption of a competing messenger. Hence tying provided Microsoft with an almost instant non‐trivial advantage in the messenger market ‘race’—the advantage derived from the dominant position in the operating system market.

Related Topics

Related Publications

Related Content

Site Footer

Address:

This website is provided by John Wiley & Sons Limited, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ (Company No: 00641132, VAT No: 376766987)

Published features on StatisticsViews.com are checked for statistical accuracy by a panel from the European Network for Business and Industrial Statistics (ENBIS)   to whom Wiley and StatisticsViews.com express their gratitude. This panel are: Ron Kenett, David Steinberg, Shirley Coleman, Irena Ograjenšek, Fabrizio Ruggeri, Rainer Göb, Philippe Castagliola, Xavier Tort-Martorell, Bart De Ketelaere, Antonio Pievatolo, Martina Vandebroek, Lance Mitchell, Gilbert Saporta, Helmut Waldl and Stelios Psarakis.