Selling extended warranties via independent companies lowers price but hurts consumers
Monday, January 5, 2015 - 19:30
in Mathematics & Economics
Retailers selling home appliances and electronics goods typically make 15-20 percent profit from these products but realize more than 200 percent profit from selling extended warranties for them. A new study finds that even though selling warranties through independent firms will lower extended warranty prices, the consumers may actually be worse off.