Comparison between two scale‐inspection and warranty policies for weight‐quality

Purpose – To make a theoretical comparison between two scale‐inspection and warranty policies for weight‐quality, one practical and the other theoretically grounded. Design/methodology/approach – Comparison is made in a Stackelberg game framework considering the consumer's as well as the manufacturer's viewpoint. Findings – The practical policy is more profitable for the manufacturer than the theoretical policy in many cases. Research limitations/implications – The study confines itself to scale‐inspection and warranty policies, but the underlying approach used in this paper can also be applied to other topics. Practical implications – The proposed model can also provide a lower bound for the warranty. Originality/value – The study compares a practical policy with a theoretical one from both the consumer's and manufacturer's point of view.