WASHINGTON, Sept. 26 /PRNewswire/ -- Robert W. Hahn, director of the AEI-
Brookings Joint Center for Regulatory Studies, is available to comment on
issues raised this morning, Wednesday, September 26, 2001 by Consumers Union
concerning Windows XP. Hahn can be reached at 202.862.5909.
Hahn's recent paper, An Analysis of the Costs and Benefits of Delaying the
Release of Windows XP, (available in full online
http://www.aei-brookings.org/publications/abstract.asp?pID=164) argues that:
-- Microsoft's critics say that the company's new operating system
threatens competition in much the same way earlier versions threatened the
Netscape Navigator Web browser - and thus Windows XP's features should be
regulated as part of the remedies imposed in any antitrust settlement.
However, in the antitrust case, the court's concerns focused on Windows'
challenge to software that could undermine Windows' role as a platform for
other software. No new features of Windows XP compete directly with potential
-- Windows XP will actually increase competition in a variety of software
niches ranging from electronic photo processing to instant messaging. The
positive impact on competition is likely to be particular important in instant
messaging, where AOL Time Warner now dominates and has bitterly resisted
attempts by Yahoo and Microsoft to crack its near-monopoly.
-- Regulation that delayed Windows XP's distribution in new computers or
undermined its acceptance by consumers would further harm an industry already
reeling from the collapse of sales in the information technology sector.
Computer makers and retailers are depending on XP to stimulate sales of the
more powerful hardware needed to take advantage of the operating system's new
features. Similarly, other software companies are pinning their hopes on
Windows XP to create demand for new or improved products.
Robert W. Hahn is director of the AEI-Brookings Joint Center for
Regulatory Studies, a resident scholar at the American Enterprise Institute,
and a research associate at Harvard University. He also served as a senior
staff member of the President's Council of Economic Advisers for two years.
Mr. Hahn has written numerous articles and frequently contributes to general-
interest periodicals and leading scholarly journals including the New York
Times, the Wall Street Journal, the American Economic Review, the Journal of
Economic Perspectives, and the Yale Law Journal. He has served as a consultant
to government and industry on a variety of issues involving regulation and
MAKE YOUR OPINION COUNT - Click Here
SOURCE White House Writers Group