The Price of a Warranty: The Case for Refrigerators

Abstract

Hedonic price analysis was used to estimate the implicit market prices of the physical attributes and warranty provisions of refrigerators. Estimates were made of the implicit market prices of 2 warranty provisions, 6 physical characteristics and 13 brands using 1975 data on 156 models. The estimates were made of the implicit market prices of an additional 4 years and 9 years warranty coverage beyond the typical 1 year coverage. The results suggest that the implicit price of such additional warranty coverage exceeds (a) the cost of a service contract for a similar period, and (b) estimates of the present value of the expected cost of repairs.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 19 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.