flatscreen tv's, the marines

http://online.wsj.com/article/SB122835660256478297.html
"Discounters, Monitors Face Battle on Minimum Pricing"
by Joseph Pereira
December 4, 2008
The Wall Street Journal

The article discusses in detail various efforts by manufacturers to enforce minimum prices on their products, but, maddeningly, barely discusses why. Maybe this second article can explain why:

http://online.wsj.com/article/SB122853554335685149.html
"Marine Corps Speeds Ahead on Growth"
by Yochi J. Dreazen
December 6, 2008
The Wall Street Journal

"Unlike the Army, the Marines doesn't try to entice would-be recruits with cash bonuses, money for college or other financial inducements. The Marines instead plays off its image as an elite fighting force. It has used the same advertising slogan for decades: "The few. The proud. The Marines.""

One possible explanation for the seemingly irrational behavior of the manufacturers (after all, they've already sold their merchandise and made their profit - what do they care what retailers do with it?) is that they are trying to maintain brand integrity. Just like the Marines, they want to be perceived as elite - and, for some reason, quality is thought to vary directly with price.

Another thought, of which I am more suspicious, is that somehow the price manufacturers will be able to charge will decrease if retailer discounts start driving the sale price down. What makes me suspicious is that, in the end, it is basic supply and demand. You can set any price for your goods that you want, but if people don't actually buy them, then they won't sell. Being inflexible on the price only leads to inefficiency and (ultimately) lost profit. So I want to say that this is not the reason.