Discussion Questions 1. If you were a retailer, how did you decide what price to charge? 2. If you were a wholesaler, how did you set a wholesale price? What did you expect the retailer to do following your choice? Did this matter in your thinking? 3. How do you decide who buys whom and for how much in the merger negotiation? Does it matter whether the retailer integrates upstream or the wholesaler integrates downstream? 4. How did you decide on a franchise fee? How did your franchise fee affect your wholesale price? 5. Suppose the wholesale market was competitive. How would this affect your pricing and merger decisions as a retailer?
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