In theory (we won't get into whether it actually works), MAP prices ensures that knife dealers have a slightly more level playing field. It prevents larger knife dealers from leveraging volume to offer deep, deep discounts with which smaller dealers can't compete. If we disregard Amazon (who may or may not play by the rules) and think of larger dealers as being the BladeHQs of the world, this decreases the gap in price between them and the smaller internet dealers and the brick and mortar shops. Whether you're for, against, or indifferent to MAP, it's an attempt on the part of knife manufacturers to prevent the monopolization of the retail sale of their product. I can't speak for Cold Steel on this, but Spyderco implemented MAP because many of their dealers were asking for it. While knife companies should care about the end line users of their knives, selling to the ELU is not how they make their money. Orders from dealers are where they make their money. Once the product it sold to the dealers, it is up to the dealer to move it on to the consumer. Based on the prevalence of MAP in the market, it seems like it is increasing demand for their product from the dealers, plain and simple.
Unless the dealers can t move the product as well at the new mandated higher price.
I bet the law of supply and demand applies at each level of sales.