The Supreme Court in State Oil Company v. Khan focused on the control of "successive monopoly" problems as the sole pro-competitive rationale for maximum vertical resale price maintenance. This article shows that the circumstances that lead a manufacturer to use maximum resale price maintenance...

Resale price maintenance need not be economically justified by the prevention of free-riding. Consistent with business realities, point-of-sale retailer promotional efforts often have a significant effect on consumer demand for a manufacturer’s products; and manufacturers often use resale...