Assessment of Quality of Warranty Policy

In this study we propose an approach of quantifying the risks of misinforming and malfunctioning aiming to assess the quality of a warranty policy. We identify the "quality" of a warranty policy as an integral measure, based on the balance between two types of warranty - the warranty of malfunctioning and warranty of misinforming. This measure is represented in terms of the length of the warranty coverage, which is the main one-dimensional warranty parameter. A possible approach of identifying the "best" quality warranty policy is outlined.