Resale price maintenance: A managerial perspective

  title={Resale price maintenance: A managerial perspective},
  author={Roger D. Blair and Joseph R. Whitman},
  journal={Managerial and Decision Economics},
Managers can improve firm profits by selecting the appropriate pricing strategy. In this article, we show how managers can use one particular controversial pricing strategy—resale price maintenance (RPM)—to enhance firm profits. We first discuss the antitrust treatment of RPM, both in the United States and internationally. Then we examine the economic effects of implementing RPM in several key contexts: product promotion, quality certification, prestige goods, and online retail. We also discuss… 



The Evolving Law and Economics of Resale Price Maintenance

  • B. Klein
  • Business, Economics
    The Journal of Law and Economics
  • 2014
Economic developments since the publication of The Antitrust Paradox have reinforced Bork’s view that resale price maintenance is part of the competitive market process by which firms create


The current debate over resale price maintenance (RPM) is seriously flawed.1 To those who see RPM as anathema to competition, price maintenance is price fixing, and permitting it, accordingly, is

The plight of online retailers in the aftermath of Leegin: An economic analysis

In this article, we provide an economic analysis of Leegin's impact on online discounters, specifically those who rely on discounting as an essential component of their business model. We begin with

Resale Price Maintenance and Quality Certification

Resale price maintenance (RPM) has been applied to a number of products that do not seem to require tangible presale dealer services. This article explains why RPM might exist in these instances. We

Price and Non-Price Competition

  • G. Stigler
  • Economics
    Journal of Political Economy
  • 1968
When a uniform price is imposed upon, or agreed to by, an industry, some or all of the other terms of sale are left unregulated. The setting of taximeter rates still allows competition in the quality

Online RPM and MFN Under Antitrust Law and Economics

The legal framing of a firm’s pricing strategy can determine whether it constitutes online resale price maintenance (RPM) or online most favored nation (MFN). Together, cases that involve online RPM

The Welfare Effects of Resale Price Maintenance

RESALE price maintenance (RPM), the practice by which manufacturers attempt to control the prices at which their products are resold by dealers and distributors, has proven popular in a great variety

Leegin and Procompetitive Resale Price Maintenance

The recent Supreme Court opinion in Leegin reversed the longstanding precedent of Dr. Miles Medical. Resale price maintenance (RPM) is no longer condemned per se but instead is treated under the rule

Why Should Manufacturers Want Fair Trade II?

  • L. Telser
  • Business
    The Journal of Law and Economics
  • 1990
HE manufacturer, the distributor, and the customer are the three parties involved in resale price maintenance. We should judge the desirability of this practice in a particular instance by whether it

Resale Price Maintenance: An Economic Analysis of its Anticompetitive Potential

AbstractA decade ago, Leegin overruled Dr. Miles and subjected RPM to rule-of-reason treatment, under which the potential for anticompetitive conduct should be analyzed (rather than automatically