Barak Y. Orbach (University of Arizona) has posted The Image Theory: RPM and the Allure of High Prices (Antitrust Bulletin, 2010) on SSRN. Here is the 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 exclusive image, thereby alluring consumers and increasing revenues.
