Question

microsoft: we’re not gouging europe on windows 7 pricing regulators in the european union have charged microsoft with illegally tying internet explorer (ie) to windows and mandated that a version of windows be offered stripped of ie. a news report suggested that when microsoft launches windows 7, it will charge a higher price for the ie-stripped version than the price for a full version that includes ie. microsoft denied this report but announced that it would offer the full version of windows 7 at a lower upgrade price. how does microsoft set the price of windows and would it be in the firm’s self-interest to set a different price for a version stripped of ie 2. why might microsoft offer the full version of windows 7 to european customers at a lower upgrade price??

Answer 1