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Purpose
To make a theoretical comparison between two scale‐inspection and warranty policies for weight‐quality, one practical and the other theoretically grounded.
Design/methodology/approach
Comparison is made in a Stackelberg game framework considering the consumer's as well as the manufacturer's viewpoint.
Findings
The practical policy is more profitable for the manufacturer than the theoretical policy in many cases.
Research limitations/implications
The study confines itself to scale‐inspection and warranty policies, but the underlying approach used in this paper can also be applied to other topics.
Practical implications
The proposed model can also provide a lower bound for the warranty.
Originality/value
The study compares a practical policy with a theoretical one from both the consumer's and manufacturer's point of view.
© Emerald Group Publishing Limited
2005
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