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Reliability, pricing and quality control. (English) Zbl 0614.90014

The purpose of this paper is to construct a theoretical framework which allows a manufacturer to examine the tradeoffs between pricing, reliability, design and quality control issues. In particular, the paper investigates effects of risk aversion on the relative prominence of one or the other policy instruments. In addition, the results of extensive numerical analyses are presented relating basic managerial guidelines with price, reliability and quality control.

MSC:

91B24 Microeconomic theory (price theory and economic markets)

Keywords:

risk aversion
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References:

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