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«Warranty and the Risk of Misinforming: Evaluation of the Degree of Acceptance1 Dimitar Christozov Stefanka Chukova American University in Victoria ...»

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The studies on the risks of misinforming are still in a very early stage, but the results obtained so far show that this risk exists and it could provide the Sellers with information, useful in indirect trading, which became very popular during the last decade through the Internet. In addition, designing a feasible warranty policy, as an instrument to enhance the trust between parties, requires cost-benefit analyzes based on quantified assessment of the risk of misinforming. In this study, the proposed approach to quantify the risk caused by information asymmetry is mostly practical and it needs further improvement and development. Our future work will address several interesting issues such as: the structure of the product, allowing for dependent attributes, as well as the study of some stochastic relationships between the parameters of the model. Of course, our ultimate goal is to apply our model to a real business enterprise.

References

Akerlof, G. A. (1970). The market for ‘Lemon’s: Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488-500.

Arrow, K. (1963). Uncertainty and the welfare economics of medical care. American Economic Review.

Christozov D. (1999). Evaluation of the quality of an option compare to its alternatives. In Polis, Dontchev, Kall, Lasiecka, Olbrot Systems Modelling and Optimization Proceedings of the 18th IFIP TC7 Conference (Research Notes in Mathematics Series), 396, pp. 318-326. CRC Press.

Christozov, D., Chukova, S., & Mateev, P. (2006). A measure of risk caused by information asymmetry in e-commerce. Journal of Issues in Informing Science and Information Technology, 3, 147-158. Retrieved from http://informingscience.org/proceedings/InSITE2006/IISITChri169.pdf Christozov D., Chukova S., & Mateev P. (2007). On the relationship between warranty and the risk of information asymmetry. Journal of Issues in Informing Science and Information Technology, 4, 235-249.

Retrieved from http://proceedings.informingscience.org/InSITE2007/IISITv4p235-249Chri295.pdf Hseih. C-T., Lai, F., & Shi, W. (2006) Information orientation and its impact on information asymmetry and e-business adoption: Evidence from China’s international trading industry, Industrial Management & Data Systems, Vol. 106, Issue 6, pp. 825-840.

Slovac, P. (1993). Perceived risk, trust, and democracy. Risk Analysis, 13, 675-682.

White, M., & Eiser, R. (2005). Information specificity and hazard risk potential as moderators of trust asymmetry. Risk Analysis, 25(5), 1187-1198.

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Part 2. The surveys’ forms

Form 2: Consider the following PC:

AMD 64 Professional Pack: AMD Athlon 64 4800+ Quad Core Hardware • 107S 17" Flat Screen Beige or Black

• PowerColour X300SE 64MB PCI Express Video Card • 2 GB DDR 400 RAM

• Seagate 160GB Serial ATA Hard Drive

• Samsung Internal IDE 52/24/52 CDRW • 3.5" Floppy Drive • 56 kbps V92 PCI Fax Modem

• Integrated 10/100 Network Card

• Microsoft Multimedia Keyboard

• Microsoft Optical Wheel Mouse

• Microsoft Windows XP Home Edition OEM Bundled Software • Microsoft Windows XP Home • Open Office ver 2 consisting of:

• Calc - MS Excel-compatible spreadsheet • Writer - MS Word-compatible word processor • Impress - MS Powerpoint-compatible presentations • Draw - Drawing program • AVG Antivirus

We need your input on the following:

Please fill in the table below by ticking the box that best represents your needs in order 1.

to perform the stated task (listed in the first column) and your opinion on the extent to which the offered computer is capable of satisfying them.

–  –  –

Specific part: Survey 1 Which warranty option would you prefer for your purchase? Please, choose ONE of the options listed

below, by ticking the box on the right:

The PC is replaced or repaired free of charge to the customer if it fails within the first THREE years after the sale date.

The customer will get full refund if he/she is not fully satisfied with the PC within the first THREE months after the sale date.

Specific part: Survey 2 Which warranty option would you prefer for your purchase? Please, choose ONE of the options listed

below, by ticking the box on the right:

The PC is replaced or repaired free of charge to the customer if it fails within the first THREE years after the sale date.

The customer will get full refund if he/she is not fully satisfied with the PC within the first THREE months after the sale date.

The customer will get full refund if he/she is not fully satisfied with the PC within the FIRST month after purchasing AND the PC is replaced or repaired free of charge to the customer if it fails within ONE year after the sale date.

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Dr.Plamen S. Mateev is Associate professor in Faculty of Mathematics and Informatics, Sofia University "St.Kliment Ohridski", Department "Probability, Operation Research, Statistics", Bulgaria, 1164 Sofia, 5, J.Boucher str., e-mail: pmat@fmi.uni-sofia.bg.

His MSc in Mathematical Statistics is from Sofia University and his PhD is from Moscow State University. The research interests are in communication theory, applied statistics, statistical software and applications. More than 70 papers are published in scientific journals and proceedings of scientific conferences. He is the Chair of Bulgarian Statistical Society and member of ENBIS and Bulgarian Informing Science Society.

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