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3. Re: Transaction costs Sep 9, 2013, 10:53 Enahs
 
Creston wrote on Sep 9, 2013, 10:15:
Really? Microsoft spent what was it... 10 billion dollars? to counter the few hundred grand that goes with having to have some meetings and draw up some contracts?

And that's assuming you even believe the transaction cost theory in the first place (remember people, just because a Nobel Prize winner said something doesn't make it true,) and in this day and age of the mega-conglomerates, it's increasingly a non-issue. Microsoft and Nokia already have lawyers and notaries and the likes on the payroll, so making these guys do some work for their salaries doesn't somehow magically make hidden costs appear.

In any case, it's a doomed venture, much like basically every Microsoft hardware venture has been a doomed venture.


Microsoft bought them because it increases there patent portfolio. Nokia had a very large patent portfolio when it comes to mobile phones. It gives Microsoft huge leveraging power over other companies when negotiating. And, depending on the phone manufacture, in many cases Microsoft is making more money from patent royalties on Android phones sold then Google is! This does not account for the ecosystem, just the actual hardware unit sold.

And I really am loving the Surface and the new Windows Phones. I hope they do well!
 
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