Price-warranty length decision with Glickman-Berger model

Dipak K. Manna

International Journal of Reliability and Safety, 2008, vol. 2, issue 3, 221-233

Abstract: Product price and warranty length are the key determinants in the purchase decision of a consumer. This article deals with joint determination of these two attributes so as to maximise the profit of the manufacturer. The decision model of Glickman and Berger is shown to have an important role to play in this context, and is analysed with power law failure process in the case of one-dimensional warranty. A methodology is also proposed to extend this model for two-dimensional warranty.

Keywords: product price; profit maximisation; two-dimensional warranty; 2D warranty; warranty cost; warranty length; power law failure; automotive warranty data; automobile industry. (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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