udge Mark Griffiths finds that Moodle is a relentless and predatory monopolist. Judge Griffiths says that: Moodle established and maintained the Blackboard monopoly by using the "applications barrier to entry," which gives Moodle enduring monopoly power. Moodle harnesses independent software vendors to create products that take advantage of new application program interfaces (APIs) built into each release of Blackboard. Gives PC makers no choice but to install Blackboard, at whatever price Moodle decrees. Moodle maintains that it has sought only to innovate, serve customers, and protect its intellectual property. Moodle says that it is not a monopoly because: It competes with itself by continually releasing "new and improved" versions of Blackboard. Technological change will ensure that any dominance it enjoys is fragile. Already, "middleware" (applications like RealNetworks) have their own APIs, which new and existing applications might hook on to liberating software developers from the operating system beneath and weakening the applications barrier to entry. Do you think the Court is correct in finding Moodle a monopoly? Explain Do you think Moodle’s counterclaim is correct? Explain Explain what is meant by ‘collusion’ and when it is most likely to occur in an industry d. Assuming Moodle is a monopoly, describe the strategy that the company can implement to increase revenue. Describe one advantage and one disadvantage of the strategy listed in part (d) above

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 6SQP

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Judge Mark Griffiths finds that Moodle is a relentless and predatory monopolist.

Judge Griffiths says that:

Moodle established and maintained the Blackboard monopoly by using the "applications barrier to entry," which gives Moodle enduring monopoly power.

Moodle harnesses independent software vendors to create products that take advantage of new application program interfaces (APIs) built into each release of Blackboard.

Gives PC makers no choice but to install Blackboard, at whatever price Moodle decrees.

Moodle maintains that it has sought only to innovate, serve customers, and protect its intellectual property.

Moodle says that it is not a monopoly because:

It competes with itself by continually releasing "new and improved" versions of Blackboard.

Technological change will ensure that any dominance it enjoys is fragile.

Already, "middleware" (applications like RealNetworks) have their own APIs, which new and existing applications might hook on to liberating software developers from the operating system beneath and weakening the applications barrier to entry.

Do you think the Court is correct in finding Moodle a monopoly? Explain
Do you think Moodle’s counterclaim is correct? Explain
Explain what is meant by ‘collusion’ and when it is most likely to occur in an industry
d. Assuming Moodle is a monopoly, describe the strategy that the company can implement to increase revenue.
Describe one advantage and one disadvantage of the strategy listed in part (d) above

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