An interesting example of strategic behavior comes from a 1997 article about Mic

Question

An interesting example of strategic behavior comes from a 1997 article about Microsoft investment in Apple (New Straits Times, 1997). Facing tough anti-trust scrutiny from government agencies, Microsoft provided financial support to Apple in order to ensure Apple survival and, therefore, to ensure that competitiveness in the industry remains. Moreover, the partnership with Apple provided an additional market for Microsoft products the MS Office and the IE products were to be bundled with the MAC OS as one of the conditions for this financing. Discuss this case in the context of market structure and strategic behavior. What market structure do these firms operate in? Why did Microsoft need to preserve competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive?

Explanation / Answer

It is converting into oligopoly from monpoly . because of the competitiv nature they could set their own prices and production quantity.   To prevent anti trust scrutiny.

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