The Image Theory: RPM and the Allure of High Prices

Abstract:     
A century of debates over resale price maintenance (RPM) has generated hundreds of articles that develop a handful of theories. This article introduces a new theory - “the image theory,” which builds on one of the oldest - yet neglected - explanations that manufacturers offer for RPM: uniform retail prices for branded goods maintain the product’s exclusive image, thereby luring consumers and increasing revenues.

Number of Pages in PDF File: 23

Keywords: Antitrust, RPM, Resale Price Maintenance,Trademarks, Luxury Goods, Status Goods

Accepted Paper Series