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Academic Articles Awards > Economics

Vertical Restraints and the Forgotten Function of Prices in Brand Management

Roman Inderst and Frank Maier-Rigaud, CPI Antitrust Chronicle, May 2015

See Roman Inderst's resume See Frank P. Maier-Rigaud's resume

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Readers’ vote will close on February 15, 2016. Readers’ vote will allow you to nominate 1 article for each of the Awards, i.e., 10 Academic articles, 10 Business articles, and the best Soft Laws. The readers’ short-list of Academic and Business Articles will be communicated to the Board together with the 20 articles nominated by the Steering Committees. The Board will decide on the award-winning articles. Results will be announced at the Awards ceremony to take place in Washington DC on the eve of the ABA Antitrust Spring Meeting on April 5, 2016.

This article emphasizes that the role of price as a cost to consumers is but one relevant role that prices play in the context of vertical restraints of branded products. In addition to being costs and signals of relative scarcity, prices also convey information, such as on the quality of the product or service. This has been widely acknowledged not only by marketing practitioners but also in the academic marketing literature that is briefly reviewed below. The arguments developed in the following are built directly on the recognition of this wider role that prices can play.

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