Reputation or warranty, what is more effective against planned obsolescence?

Figures & data

Figure 1. Optimal time paths for different levels of the length of the warranty period, ω.

Figure showing the sales $s\left(t\right)$, the average time to breakdown $b\left(t\right)$, the reputation $R\left(t\right)$, the potential customers $c\left(t\right)$, and price over time for three different choices of the warranty period, i.e. ω.

Figure 2. The optimal solution for different levels of the fraction of consumers, α, asking for a new product when their products break down in the warranty period.

Figure showing the sales $s\left(t\right)$, the average time to breakdown $b\left(t\right)$, the reputation $R\left(t\right)$, the potential customers $c\left(t\right)$, and price over time for three different choices of the fractions of customers, i.e. α, asking for a new product when their products break down during the warranty period.

Figure 3. Optimal time paths for different levels of the variance of the product lifetime, ${\sigma }^2.$

Figure showing the sales $s\left(t\right)$, the average time to breakdown $b\left(t\right)$, the reputation $R\left(t\right)$, the potential customers $c\left(t\right)$, and price over time for three different choices of the variance of the product lifetime, i.e. ${\sigma }^2$.

Figure A1. Sensitivity analysis performed with different ω.

Time paths of the average time to breakdown $b\left(t\right)$ for about $\pm 20$ % of the model parameters ${\theta }_1={\theta }_2$, $C_{max}$, $c_1$, $c_2$, δ for three different choices of the warranty period, i.e. ω.

Figure A2. Sensitivity analysis performed with different α.

Time paths of the average time to breakdown $b\left(t\right)$ for about $\pm 20$ % of the model parameters ${\theta }_1={\theta }_2$, $C_{max}$, $c_1$, $c_2$, δ for three different choices of the fractions of customers, i.e. α, asking for a new product when their products break down during the warranty period.

Figure A3. Sensitivity analysis performed with different ${\sigma }^2$.

Time paths of the average time to breakdown $b\left(t\right)$ for about $\pm 20$ % of the model parameters ${\theta }_1={\theta }_2$, $C_{max}$, $c_1$, $c_2$, δ for three different choices of the variance of the product lifetime, i.e. ${\sigma }^2$.

Data availability statement

Data sharing is not applicable to this article as no new data were created or analysed in this study.