Consider a supply chain involving an independent retailer and an independent manufacturer. The manufacturer produces a single product and sells it exclusively through the retailer. Using this supply chain framework, we develop a game theoretic model to study two commonly observed practices of selling extended warranties: the manufacturer offers the extended warranty directly to the end consumer...

This article investigates whether the contractual exclusion of third-party extended warranties should be legally permissible, using a model incorporating consumer heterogeneity. The welfare effects of competition in the market for extended warranties are shown to depend on the degree of competition in the product market. In contrast to the approach typically adopted by the courts, the article a...

Modelling of deteriorating systems with preventive repair during warranty using geometric processes was carried out in the previous chapter. In this chapter the independent and identically distributed assumption of geometric processes is relaxed to assume only the independent successive inter arrival times. Surveying the literature, one is struck by the fact that there has been so little resear...

Purpose – The purpose of the paper is to develop a conceptual framework that integrates the technology and commercial issues early at the design stage to minimize warranty costs in the most effective and efficient manner and also to develop a model for optimization of warranty with specific focus on reliability and warranty policies. Design/methodology/approach – The critical issues in warranty...

This research examines a temporal factor's influence—showing an extended warranty before versus after consumers purchase product—on consumers' likelihood of purchasing the warranties. Our results show that are more likely to committing product rather than doing so. These appear result from differing mental construals. Before purchase, construals conditioned on failures accessible; accordingly, ...