Consider the same supply chain setting as in Practice Problem $3$ in the Newsvendor lecture.

The wholesaler buys newspapers from the publisher. The wholesaler then sells the newspaper to the local newsvendors at $80$ cents per newspaper, and the local newsvendors sell the newspaper to the final customer at $1$ dollar each.

The wholesaler wants to influence the newsvendor to purchase more newspapers, so they agree to buy back unsold newspapers at a price of $$0\mathrm{.}50/$newspaper$.$