A Warranty Service Contract among Manufacturer and Agent

This paper focuses on the research of warranty service contract among one manufacturer and one agent. In order to obtain a better result, we use the method of game theory to simulate the interaction between two participants. By maximizing the profit of the manufacturer and the agent, obtaining the manufacturer´s optimal sale price, warranty period and warranty price, and the agent´s optimal maintenance price or repair price. Finally, the paper presents several numerical examples and parameter analysis to illustrate the models, and put forward some managerial insights.