Resale Price Maintenance: An Economic Study of the FTC's Case Against Corning Glass Works

Authors:
Pauline M. Ippolito and Thomas R. Overstreet, Jr.

The study is intended to help increase understanding of the economic motivation for RPM when the products at issue are relatively simple goods that do not fit the most well-known efficiency rationales for the practice. The study found no evidence of collusion among Corning's dealers or competitors, and stock market movements (as well as the value of sales) for Corning and some of its competitors do not support anticompetitive theories. The authors find the results "consistent with the theory that RPM may at times be used as a method of increasing distribution of 'simple' products sold through multiproduct dealers."