IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v26y2009i03ns0217595909002274.html
   My bibliography  Save this article

On Two Types Of Warranties: Warranty Of Malfunctioning And Warranty Of Misinforming

Author

Listed:
  • DIMITAR CHRISTOZOV

    (Department of Computer Science, American University in Bulgaria, Blagoevgrad, Bulgaria)

  • STEFANKA CHUKOVA

    (School of Mathematics, Statistics and Computer Science, Victoria University of Wellington, Wellington, New Zealand)

  • PLAMEN MATEEV

    (Department of Mathematics and Informatics, University of Sofia "St. Kliment Ohridski", Sofia, Bulgaria)

Abstract

In this paper we focus on two types of risks, the risk of malfunctioning of a product quantified by its reliability, and the risk of misunderstanding the features and qualities of a product while deciding whether to buy it. The later risk is caused by the information asymmetry, which is a natural property of any communication process. We discuss the relationship between these risks and product warranty. We begin with an overview of warranties from the decision-makers' viewpoint. We elaborate on the purposes, legalities, and types of warranties and follow with a summary of mathematical models and concepts for quantifying the financial implications of warranties of malfunctioning. Further, we propose a model for quantifying the risk of misinforming and elaborate on the relationship between this risk and product warranty.

Suggested Citation

  • Dimitar Christozov & Stefanka Chukova & Plamen Mateev, 2009. "On Two Types Of Warranties: Warranty Of Malfunctioning And Warranty Of Misinforming," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 26(03), pages 399-420.
    • Handle: RePEc:wsi:apjorx:v:26:y:2009:i:03:n:s0217595909002274
    DOI: 10.1142/S0217595909002274
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595909002274
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217595909002274?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:apjorx:v:26:y:2009:i:03:n:s0217595909002274. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.