SFB 303 Discussion Paper No. A - 041


Author: Emons, Winand
Title: On the Limitation of Warranty Duration
Abstract: This paper analyses the frequently observed phenomenon that firms offer product warranties which are of much shorter duration than the life expectancy of these products. It is shown that competitive equilibria may entail limitation of warranty duration if firms face adverse selection problems with respect to different consumers.
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Creation-Date: February 1986
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