Witness: consumers have benefited from lower prices.

Microsoft_s first witness testified Tuesday that adding products to computer operating systems could harm consumers. But economist Richard Schmalensee said that didn_t happen when Internet Explorer started shipping with Windows. In written testimony, Schmalensee, dean of MIT_s Sloan School of Management, said consumers have benefited from lower prices, better software, and increased innovation, thanks to Microsoft. Under cross-examination, he said the key question was: "Does the integration provide benefits?" US Justice Department attorney David Boies continued his cross-examination as the trial resumed Tuesday after the long holiday weekend. It was a wearying day of quibbling over economic theory… During a break in the proceedings, Boies apologized for the slow pace of the proceedings. "We are covering the underbrush, if you will," he said. "It is in some sense old ground." In his eagerness to make a point, Boies repeatedly interrupted Schmalensee, eventually prompting the witness to complain, "It would ... be nice if you had let me finish sentences." "Have you made any effort to determine whether there are or are not two separate products?" Boies asked. "Yes," Schmalensee replied. "Have you concluded that browsers are a separate product from the operating system?" Boies said. "I have concluded that they are not," Schmalensee said. In an effort to show Schmalensee saw things differently 18 years ago, Boies used a video monitor to display excerpts of transcripts from an antitrust case against Data General, in which the economist also testified as an expert witness. Schmalensee said in 1981 customers were "locked in" to Data General_s operating system. "Customers do not consider conversion to be a practical commercial alternative to staying with Data General_s operating system. These are the customers referred to as the committed or locked-in customers," he testified at the time...