Some economists argue that Microsoft became a monopoly in the market for computer software by developing MS-DOS,an operating system used for the first IBM personal computers.The more people who used MS-DOS-based programs,the greater the usefulness of using a computer with an MS-DOS operating system.The explanation for Microsoft's monopoly is

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The concept of network externalities suggests that the greater the number of people using a product or service, the more valuable it becomes for others to use it as well. In Microsoft's case, as more people used MS-DOS, the more valuable the operating system became for others to use, creating a self-reinforcing cycle that allowed Microsoft to establish a monopoly position in the market for computer software.

Some Economists Argue That Microsoft Became a Monopoly in the Market