Resale price maintenance in supply chains with general multiplicative demand

We analyze a supply chain with a Resale Price Maintenance (RPM) contract in which the manufacturer sets the retail price with a general multiplicative price-demand function and prove the existence/uniqueness of an equilibrium. We also compare the equilibrium prices and quantities, consumer surplus and total system welfare for the RPM and wholesale price contracts. We conclude that a manufacturer may capture a smaller share of the total supply chain profit despite her ability to set the retail price.