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 became.The explanation for Microsoft's monopoly is

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Network externalities occur when the value of a good or service increases as more people use it. Microsoft's monopoly in the market for computer software was due to the network externalities created by MS-DOS, where the more people who used it, the more valuable it became due to compatibility with other MS-DOS programs. This gave Microsoft significant market power and control over the key resource of the operating system, leading to a monopoly.

Some Economists Argue That Microsoft Became a Monopoly in the Market