Dynamic pricing and warranty policies for products with fixed lifetime

摘要: Abstract We consider a repairable product with known market entry and departure times. A warranty policy is offered purchase, under which customer can have failed item repaired free of charge in the period. It assumed that customers are heterogeneous their risk attitudes toward uncertain repair costs incurred after expires. The objective to determine joint dynamic pricing for lifetime product, maximizes manufacturer’s expected profit. In first part analysis, we linearly decreasing price function constant length. study customers’ purchase patterns several different strategies by manufacturer then discuss optimal strategy. second part, assume length be altered once during developing policy. Numerical studies show significantly outperform fixed-length