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Disclaimer: This paper has been written solely as the basis for class discussion, for educational and development purposes, and is not intended to illustrate either the effective or ineffective handling of an administrative situation or to represent successful or unsuccessful managerial decision making or endorse the views of management. Some of the names, events and financial and other information have been disguised to protect identities and maintain confidentiality. Acknowledgments: We are grateful to the Foundation for Economic Education and for research funding.