The Image Theory: RPM and the Allure of High Prices
University of Arizona
May 17, 2010
Antitrust Bulletin, 2010
Arizona Legal Studies Discussion Paper No 09-39
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
Date posted: December 26, 2009 ; Last revised: May 18, 2010
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