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.

Warranties, Warranty, Economic aspects, Practice, Monopolies, Rents (Property), Report

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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.

Diversified Companies, Analysis, Conglomerate corporations, Influence, Market development

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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.

Distribution Channels, Competition (Economics), Causes of, Oligopolies, Retail/reseller channel, Direct market channel

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