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  Prying apart Microsoft's pricing logic
Time: 11:56 EST/16:56 GMT | News Source: CNET | Posted By: Robert Stein

Stanford Article "At the time of the Justice Department's landmark antitrust case against Microsoft, the software maker was selling its Windows operating system to computer manufacturers for an extremely low price given the company's dominance in the market. At the same time, it was charging significantly more for its Microsoft Office application suite. Given that both products had comparable market shares, why did Microsoft charge only about $60 for Windows--its "base" product--instead of the $1,800 that many estimate it could have demanded, and why did it choose to price Office--the "complementary" good--at nearly four times as much? "
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