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The Image Theory: RPM and the Allure of High Prices

23 Pages Posted: 26 Dec 2009 Last revised: 18 May 2010

Barak Orbach

University of Arizona

Date Written: May 17, 2010

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.

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

Suggested Citation

Orbach, Barak, The Image Theory: RPM and the Allure of High Prices (May 17, 2010). Antitrust Bulletin, 2010; Arizona Legal Studies Discussion Paper No 09-39. Available at SSRN: https://ssrn.com/abstract=1526578

Barak Orbach (Contact Author)

University of Arizona ( email )

1201 E. Speedway Blvd.
Tuscon, AZ 85721-0176
United States
520-626-7256 (Phone)
520.858.0025 (Fax)

HOME PAGE: http://www.orbach.org

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