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Academic

: Legal Theory Blog

Orbach on the Image Theory of Resale Price Maintenance

By Lawrence Solum

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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.

Full post as published by Legal Theory Blog on December 30, 2009 (boomark / email).

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