In the buyback contract, a win$-$win solution ensures that each supply chain party receives a profit higher than their respective equilibrium profit under the wholesale price contract. We can always find such a solution in the buyback contract because: $q,$ The buyback contract ensures a higher total supply chain profit than the wholesale price contract.

Supply chain parties do not make their respective optimal decisions in the wholesale price contract.

The buyback contract effectively reduces the production cost.

The retailer sets a higher selling price in the buyback contract.

$$ The buyback contract has the potential to stimulate greater demand from customers.