First of All Do No Harm

Here's an analysis of the EU's Microsoft Remedy originally published in the Economist's Voice. Barry Nalebuff and I argue that European Commission's requirement that Microsoft sell a version of the Windows operating system without Windows Media player will only have an impact if the tie was socially inefficient:

Just as King Solomon’s proposal to divide the baby only caused pain to the true mother, the Commission’s remedy will only cause pain to a monopolist who abused its position.

Dislosure: Nalebuff testified at the Court of First Instance hearings on behalf of a third party–the Computer and Communications Industry Association (CCIA).