In this article, I investigate the effect warranties have on durable-goods markets. Many if not most goods that are sold with a warranty are durable goods; thus, it is extremely important to consider the role of warranties in a durable-goods setting. This article analyzes the signaling role of...

In this paper, I investigate the effect warranties have on durable goods markets. Many if not goods that are sold with a warranty are durable goods, thus, it is extremely important to consider the role of warranties in a durable goods setting. This paper analyzes the signaling role of warranties...