The Image Theory: RPM and the Allure of High Prices

Posted by D. Daniel Sokol

Barak Orbach (Arizona Law) has an interesting article on 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 exclusive image, thereby alluring consumers and increasing revenues.