Warranties as a device to extract rent from low-risk users of a product
Article Abstract:
Monopolists bundle their products with a warranty to extract rent from low-risk users. The imposition of a warranty increases a product's price to high-risk users, removing the incentives for low-risk users to pretend to be high-risk users. High-risk users are more likely to cause product failure than low-risk users.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 2008
User Contributions:
Comment about this article or add new information about this topic:
Causes and effects of multimarket activity from theory to empirical analysis
Article Abstract:
Corporate diversification is driven by the exploitation of some firm specific resources, which are accumulated in the past. The three different theories, which explain this show that the causes and effects of diversification are not mutually exclusive.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 2004
User Contributions:
Comment about this article or add new information about this topic:
Credible collusion in multimarket oligopoly
Article Abstract:
The adoption of multimarket contact in controlled supply markets, and the cause of serious competition among similar firms are examined.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 2007
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Exchange rates and fundamentals: evidence on long-horizon predictability
- Abstracts: Federalism as a commitment to preserving market incentives. An economic evaluation of the Moneyball Hypothesis
- Abstracts: Eugenics and Economics in the progressive era. Some uses of happiness data in economics. Biological basics and the economics of the family
- Abstracts: Regional cooperation in Central Asia a view from Turkmenistan. part 2 Regional cooperation in Central Asia: a view from Uzbekistan (II)
- Abstracts: Managerial incentives and the structure of management buyouts. Financial fragility and economic fluctuations