E-book Price-Fixing: Finding the Best Model for Publishers — and Readers

The legal controversy over Apple's efforts to use the agency model when selling books directly to its consumers offers a good opportunity to examine the benefits and costs of adopting that approach, both for online retailers and their customers. Does the agency model of selling online harm consumers — and society in general — by raising prices for numerous products, not just for e-books? Or might the agency model offer significant, if often overlooked, economic and social benefits over the wholesale model for manufacturers, retailers and the general public?