This is John Bachelor speaking with my colleague Professor Richard Epstein of the

Hoover Institution about the Department of Justice Anti-Trust Division sued

against Apple for its bigness but especially for discouraging

competition dominating the market as I understand it. Richard here speaks to

how it is that Apple has become so dominant in the marketplace.

How it is that Apple turns customers into salesmen.

How it is that Android, the competitor, is equally well adept at making

customers into salesman. This is a battle of two successful companies. No indication of

monopoly in sight. Richard explains here very quickly. More of this later.

Richard Epstein, Hoover Institution, the DOJ case against Apple.

No, they're crazy. I mean, what they're saying in effect is Apple is able to provide a product that people eagerly buy.

They sell huge numbers of them.

There are no strings attached.

There's a large gain to the consumer, a large gain to Apple, but competitors are disappointed when they offer

inferior products at a lower price than nobody wants to buy. I mean the fact that

they could charge high prices for their products is a sign of their merits. If these guys were

huxas of some sort you buy one apple phone it wouldn't work and you'd never buy

another but the reason why Apple succeeds is the reason why all good companies succeed. Their advertisements are very

effective, but more importantly, user experience on the bound, spreads by word of mouth, and what happens is once that particular behavior happens what they do is

every one of their satisfied customers turns out to be a de facto salesman for the next

customer to come in. There is a fairly formidable competitor

in the Android system and so forth,

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