Microsoft's Economist Witness Embroiled in Antitrust Trial Debacle

Microsoft's economist witness, professor Richard Schmalensee, testified that survey information paid for by the company, which reached conclusions requested by Bill Gates, was not misleading. However, the survey's biased nature and Gates's influence on the results have raised questions about the integrity of the evidence presented in the antitrust trial. The survey's results showed that 85% of developers believed Microsoft's integration of internet functions into Windows would help the company, and 83% thought it would benefit consumers.

Key Takeaways:

• Professor Richard Schmalensee, Microsoft's economist witness, used survey information paid for by the company to reach conclusions requested by Bill Gates.
• The survey's results showed that 85% of developers believed Microsoft's integration of internet functions into Windows would help the company, and 83% thought it would benefit consumers.
• The survey's question was heavily biased, detailing benefits of integration and no disadvantages, which may have influenced the results.
• Ann Redmond, a researcher for Microsoft, acknowledged in a memo that the survey was "not entirely unbiased" and advised against releasing the question to the press.
• David Boies, the government's lead lawyer, presented several Microsoft emails, including one where Gates set out what he wanted in the survey, saying it would "HELP ME IMMENSELY" to have a survey showing that 90% of developers believed putting the browser into the operating system makes sense.
• Schmalensee claimed that the survey was a random survey done by a third-party research firm, but Gates's influence and the survey's biased nature have raised questions about its integrity.

Statistics:

• 85% of developers believed Microsoft's integration of internet functions into Windows would help the company.
• 83% of developers believed that Microsoft's integration of internet functions into Windows would benefit consumers.
• 90% of surveyed developers were asked to respond to a question that effectively advocated for the installation of the browser into the operating system.
• 350 words: The length of the question used to elicit the positive response from developers.

Sources:

• Schmalensee's written testimony, dated March 1998.
• Microsoft internal memo by Ann Redmond, dated February 23, 1998.
• Microsoft emails presented by David Boies in court, including one from Gates dated February 14, 1998.
• Schmalensee's testimony as stated in the antitrust trial.