Hakes, David; Shin, Dongsoo - In: Managerial and Decision Economics 29 (2008) 1, pp. 1-7
We develop a simple model that provides a new rationale for why a monopolist should bundle its product with a warranty even when all parties are risk neutral. In our model, a risk-neutral monopolist faces two types of risk-neutral consumers-low-risk users that are unlikely to cause product...
