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Warranties, extended warranties, and product quality

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  • Lutz, Nancy A.
  • Padmanabhan, V.

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Suggested Citation

  • Lutz, Nancy A. & Padmanabhan, V., 1998. "Warranties, extended warranties, and product quality," International Journal of Industrial Organization, Elsevier, vol. 16(4), pages 463-493, July.
  • Handle: RePEc:eee:indorg:v:16:y:1998:i:4:p:463-493
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    References listed on IDEAS

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    1. Matthews, Steven & Moore, John, 1987. "Monopoly Provision of Quality and Warranties: An Exploration in the Theory of Multidimensional Screening," Econometrica, Econometric Society, vol. 55(2), pages 441-467, March.
    2. V. Padmanabhan & Ram C. Rao, 1993. "Warranty Policy and Extended Service Contracts: Theory and an Application to Automobiles," Marketing Science, INFORMS, vol. 12(3), pages 230-247.
    3. Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-483, December.
    4. Russell Cooper & Thomas W. Ross, 1985. "Product Warranties and Double Moral Hazard," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 103-113, Spring.
    5. Kubo, Yuji, 1986. "Quality uncertainty and guarantee: A case of strategic market segmentation by a monopolist," European Economic Review, Elsevier, vol. 30(5), pages 1063-1079, October.
    6. Schmalensee, Richard, 1982. "Commodity Bundling by Single-Product Monopolies," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 67-71, April.
    7. Taylor, Curtis R, 1995. "The Economics of Breakdowns, Checkups, and Cures," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 53-74, February.
    8. Nancy A. Lutz, 1989. "Warranties as Signals under Consumer Moral Hazard," RAND Journal of Economics, The RAND Corporation, vol. 20(2), pages 239-255, Summer.
    9. Philip H. Dybvig & Nancy A. Lutz, 1993. "Warranties, Durability, and Maintenance: Two-sided Moral Hazard in a Continuous-Time Model," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 575-597.
    10. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    11. Thomas J. Holmes, 1984. "Monopoly Bundling of Warranty and Quality When Quality is Unobservable," Discussion Papers 612, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    12. Emons, Winand, 1989. "On the Limitation of Warranty Duration," Journal of Industrial Economics, Wiley Blackwell, vol. 37(3), pages 287-301, March.
    13. Mann, D.P. & Wissink, J.P., 1989. "Hidden Actions And Hidden Characteristics In Warranty Markets," Department of Economics Working Papers 133, Department of Economics, Williams College.
    14. Nancy A. Lutz & V. Padmanabhan, 1995. "Why Do We Observe Minimal Warranties?," Marketing Science, INFORMS, vol. 14(4), pages 417-441.
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    Cited by:

    1. Laksana, Kamonkan & Hartman, Joseph C., 2010. "Planning product design refreshes with service contract and competition considerations," International Journal of Production Economics, Elsevier, vol. 126(2), pages 189-203, August.
    2. repec:wsi:apjorx:v:34:y:2017:i:01:n:s0217595917400024 is not listed on IDEAS
    3. Mai, Dung T. & Liu, Tieming & Morris, Michael D.S. & Sun, Shuzhen, 2017. "Quality coordination with extended warranty for store-brand products," European Journal of Operational Research, Elsevier, vol. 256(2), pages 524-532.
    4. repec:eee:indorg:v:54:y:2017:i:c:p:239-268 is not listed on IDEAS
    5. Michel, Christian, 2016. "Market Regulation of Voluntary Add-on Contracts," Annual Conference 2016 (Augsburg): Demographic Change 145892, Verein für Socialpolitik / German Economic Association.
    6. D Vandegrift, 2001. "Quality-Assuring Price And Breach Of Express Or Implied Warranty," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 186-196, April.
    7. repec:eee:reensy:v:168:y:2017:i:c:p:338-354 is not listed on IDEAS
    8. repec:pal:jorsoc:v:58:y:2007:i:12:d:10.1057_palgrave.jors.2602326 is not listed on IDEAS
    9. Murthy, D. N. P. & Djamaludin, I., 2002. "New product warranty: A literature review," International Journal of Production Economics, Elsevier, vol. 79(3), pages 231-260, October.
    10. repec:eee:reensy:v:142:y:2015:i:c:p:326-333 is not listed on IDEAS
    11. Takaoka, Sumiko, 2005. "The effects of product liability costs on R&D with asymmetric information," Japan and the World Economy, Elsevier, vol. 17(1), pages 59-81, January.
    12. repec:eee:ejores:v:263:y:2017:i:2:p:596-610 is not listed on IDEAS
    13. Bo Jiang & Xubing Zhang, 2011. "How Does a Retailer's Service Plan Affect a Manufacturer's Warranty?," Management Science, INFORMS, vol. 57(4), pages 727-740, April.
    14. Desai Preyas S & Padmanabhan Paddy, 2004. "Durable Good, Extended Warranty and Channel Coordination," Review of Marketing Science, De Gruyter, vol. 2(1), pages 1-25, January.
    15. Ku, Cheng-Yuan & Chang, Yi-Wen, 2012. "Optimal production and selling policies with fixed-price contracts and contingent-price offers," International Journal of Production Economics, Elsevier, vol. 137(1), pages 94-101.

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