[zach]

Most companies know that there will always be inefficiencies and even seriously dubious stuff wrapped up in affiliate programs, but accept them anyway.

I think there are is a counter-argument to be made because price discrimination is almost always sloppy, yet better than none at all. But your point is basically right -- most companies wouldn't want to do this. And yet the craziest stuff happens in affiliate programs...

Actually, I would love to hear more from folks out there (spez?) who have a perspective on affiliate programs. I ran experimental campaigns with Commission Junction and Expedia a few years back and found insight on the affiliate marketing business hard to come by. Any readings on this topic are appreciated.