Extended warranty in competing dual-channel supply chains

This article considers extended warranty decisions in competing dual-channel supply chains and uses game theories to analyze three model. We also discuss scenarios when the manufacturer provides the extended warranty and when the retailer does in each model. Our analysis reveals that: 1) In model MR, scenario MR-R outperforms MR-M for the manufacturer, the retailer and the whole system. 2) In model MRR, scenario MRR-R outperforms MRR-M for the manufacturer, while scenario MRR-R outperforms MRR-M under certain conditions for the retailers and the whole system. 3) In model MMR, scenario MMR-R outperforms MMR-M for the retailer and the whole system, while for the manufacturer, it depends on parameters such as channel substitutability and extended warranty sensitivity.