1. Oil companies do not allow dealers (franchisees) to buy gas from distributors. Dealers must buy gas...
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1. Oil companies do not allow dealers (franchisees) to buy gas from distributors. Dealers must buy gas from the central oil company. Dealers often complain that this is unfair. The practice has been the subject of antitrust lawsuits. Oil company executives argue that this policy is important because it limits free-riding on the part of the distributors. Explain the executives’
arguments in more detail.
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Related Book For 
Managerial Economics And Organizational Architecture
ISBN: 9781260571219
7th International Edition
Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley
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