A Study on the Contract Model of Product Warranty to Manufacturers

The interaction among protection strength of product warranty contract,product quality level provided by the manufacturer and the effort level provided by the consumers to the product under the existing double-side moral hazard between manufacturing enterprises and consumers are analyzed in this paper and a product warranty contract models is built up.Under the information symmetry theories,it shows that the win-win product warranty contract can be reached between manufacturers and consumers through consultation.However,it is difficult to reach a mutually satisfactory product warranty contract under the information asymmetry theories.