ARNOLD KLING
August 14, 2011
The Top Political Contributors
August 11, 2011
Gender and the New Commanding Heights
August 11, 2011
Jamie Galbraith Makes an Assumption
August 11, 2011
Macroeconometrics: The Science of Hubris
August 10, 2011
Real and Nominal Bond Yields
BRYAN CAPLAN
August 14, 2011
The Effect of Thumb Sucking on Income
August 12, 2011
The Voice of Cold, Hard Truth to All Would-Be Educators
August 12, 2011
Ability, Morality, and Prosperity: A Paper and a Report
August 11, 2011
The Theory of Time and Frittering
August 10, 2011
Male Variance and the Remnants of the Gender Gap
DAVID HENDERSON
August 9, 2011
Hayek in "Unbroken", Part Two
August 8, 2011
Hayek in "Unbroken"
August 5, 2011
James Bovard on the Peace Corps
August 4, 2011
Summers Way Off on FDR and 1941
August 3, 2011
The "Amazon" Tax
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I see this as a form of subsidy. Enough people gamble on the odds that they will need to exercise the warranty and it keeps the prices low for others who gamble on the odds of the product lasting. Both sides get what they want.
I think that's great. It means that I get all my stuff below cost, given that I never buy the extended warranty or neglect to mail my rebate form.
Thanks, nervous and lazy buyers!
How often do you actually have to rely on a warranty for a product? I can understand getting a warranty and even extended warranty on "high dollar items," such as cars and even some home appliances. When it comes to getting a warranty on smaller items such as cell phones, I think it is a waste of money. Salespeople do a great job of convincing consumers that they need these warranties. For those of us who are less concerned with the possible risk involved with not buying the warranty, we can enjoy paying lower prices.