AAI Working Paper No. 14-03: Resale Price Maintenance: A Review and Call for Research

Resale price maintenance (RPM) is a channel pricing strategy that establishes the price below which a product cannot be resold. The Supreme Court’s decision in Leegin Creative Leather Products, Inc. v. PSKS, Inc. (2007) overruled a nearly 100-year old rule against RPM agreements. Together with evolving changes in business, the decision has focused increased attention on this marketing practice and prompted calls for contemporary research on its use and effects. The authors organize historical understanding, review past empirical research, advance new perspectives and propositions for research, discuss marketing literature with potential to enhance future understanding of RPM, and offer an agenda for interested researchers.