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In earlier work byjoskow and by Cummins and VanDerhei, the American Agency system of distribution has been deemed inefficient, i.e. excessively costly. We test this in a natural way by examining whether the system survives in competition with more efficient systems. We find that it survives, but...
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Several states legislatures are trying to roll back the clock and restore the per se illegality of RPM. This, we argue, is a mistake based on faulty economic reasoning.
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