Stackelberg Game Framework Research Articles

Comparison between two scale‐inspection and warranty policies for weight‐quality

PurposeTo make a theoretical comparison between two scale‐inspection and warranty policies for weight‐quality, one practical and the other theoretically grounded.Design/methodology/approachComparison is made in a Stackelberg game framework considering the consumer's as well as the manufacturer's viewpoint.FindingsThe practical policy is more profitable for the manufacturer than the theoretical policy in many cases.Research limitations/implicationsThe 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 implicationsThe proposed model can also provide a lower bound for the warranty.Originality/valueThe study compares a practical policy with a theoretical one from both the consumer's and manufacturer's point of view.