The Image Theory: RPM and the Allure of High Prices

Research output: Contribution to journalArticle

8 Citations (Scopus)

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 a branded good maintains the product's exclusive image, thereby luring consumers and increasing revenues.

Original languageEnglish (US)
Pages (from-to)277-307
Number of pages31
JournalAntitrust Bulletin
Volume55
Issue number2
DOIs
StatePublished - Jun 1 2010
Externally publishedYes

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price theory
revenue
Resale price maintenance

ASJC Scopus subject areas

  • Law
  • Economics and Econometrics

Cite this

The Image Theory : RPM and the Allure of High Prices. / Orbach, Barak Y.

In: Antitrust Bulletin, Vol. 55, No. 2, 01.06.2010, p. 277-307.

Research output: Contribution to journalArticle

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