Resale Price Maintenance after Leegin: The Curious Case of Contact Lenses

Resale Price Maintenance: Implications of Marketing Trends for the Colgate Doctrine and the Leegin Factors

“…For attorneys, judges, and forensic experts, our research facilitates consideration of the larger context for understanding and assessing the facts of a case and therefore offers guidance for explaining the existence and effects of RPM agreements. The benefits to be gained from understanding the larger context of a case may be illustrated through consideration of recent litigation involving allegations of unlawful RPM in the sale of contact lenses (Gundlach and Krotz 2016; Lindsay 2017; Marvel 2017). Patients require a prescription from an eye care professional (ECP) to purchase contact lenses.…”

Resale Price Maintenance after Leegin: Behavioral, Evolutionary, and Institutional Insights for Advancing the Free Rider Thesis

“…Contemporary understanding of the practice and related strategies is not widely available. Case studies that have examined applications of RPM since Leegin (e.g., recent cases such as those involving allegations of widespread use of RPM in the sale of contact lenses; Gundlach and Krotz 2016) should also be considered. Finally, the perspectives and propositions offered in this article should be extended to the advance understanding of other explanations for RPM.…”

“…Suggestive empirical evidence comes from McEachern and Romeo (1984), who found widespread use of RPM in the audio component industry. More recent evidence of these effects is observable in the contact lens industry (Gundlach and Krotz 2016). Recognizing the role of normative forces in the adoption of RPM, we propose:P 11 : Beyond independent calculations of the utility of RPM in addressing free riding and inducing reseller promotion, rival manufacturers may adopt RPM because of the normative influence resulting from its widespread use by competing manufacturers.…”