What is the simple logic of warranties as a quality signal

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1. What is the simple logic of warranties as a quality signal? What limits the attractiveness of warranties as a signal for high-quality firms?

2. Describe the basic moral hazard problem in the context of quality provision? How can reputation for high quality be sustained?

Reference no: EM13896104

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What is the simple logic of warranties as a quality signal : What is the simple logic of warranties as a quality signal? What limits the attractiveness of warranties as a signal for high-quality firms?

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