Establishing a consumer indifference function and its estimator for quantity purchases

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dc.contributor.advisorDeuermeyer, Bryan L.
dc.contributor.committeeMemberBlank, Leland T.
dc.contributor.committeeMemberFoster, Joseph W.
dc.contributor.committeeMemberWehrly, Thomas E.
dc.creatorIp, Tak Cha
dc.date.accessioned2020-08-21T21:51:51Z
dc.date.available2020-08-21T21:51:51Z
dc.date.issued1983
dc.descriptionTypescript (photocopy).en
dc.description.abstractThis dissertation documents the development of a pricing scheme which relates unit purchase price to the reliability performance of the items purchased. Stochastic cost models are developed to derive a function, called the "indifference function," which specifies the unit purchase price the consumer will pay for the product, given its reliability performance. The consumer will have no preference as to the various combinations of the reliability performance and unit purchase price of the product represented by the indifference function. The stochastic cost models are derived from a situation where an item operates for a random interval, then is followed by a maintenance period of random cost and duration. This pattern is repeated until the item finally fails. The consumer receives a financial return over the operating life of the item. By applying renewal theory, the total expected return over the life time of the item is evaluated. This value is interpreted as the indifference function for the consumer. In the situation where the consumer is offered an optional full service warranty, which covers all the repair costs that occur during the warranty period, an indifference price at which the consumer is indifferent to whether to purchase the warranty or not is derived. In most cases, the indifference function is a function of unknown parameters and must be estimated. A complete estimation procedure is developed to obtain an estimator (in some cases, a uniformly minimum variance unbiased (UMVU) estimator) for the indifference function and the required curtailment number that will attain the desired levels of protection for the producer and the consumer.en
dc.format.digitalOriginreformatted digitalen
dc.format.extentviii, 89 leavesen
dc.format.mediumelectronicen
dc.format.mimetypeapplication/pdf
dc.identifier.oclc10986696
dc.identifier.urihttps://hdl.handle.net/1969.1/DISSERTATIONS-537972
dc.language.isoeng
dc.publisher.digitalTexas A&M University. Libraries
dc.rightsThis thesis was part of a retrospective digitization project authorized by the Texas A&M University Libraries. Copyright remains vested with the author(s). It is the user's responsibility to secure permission from the copyright holder(s) for re-use of the work beyond the provision of Fair Use.en
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectIndustrial Engineeringen
dc.subject.classification1983 Dissertation I64
dc.subject.lcshUnit pricingen
dc.subject.lcshMathematical modelsen
dc.subject.lcshConsumersen
dc.subject.lcshAttitudesen
dc.subject.lcshConsumersen
dc.subject.lcshPricesen
dc.subject.lcshGovernment policyen
dc.titleEstablishing a consumer indifference function and its estimator for quantity purchasesen
dc.typeThesisen
dc.type.genredissertationsen
dc.type.materialtexten
thesis.degree.disciplinePhilosophyen
thesis.degree.grantorTexas A&M Universityen
thesis.degree.levelDoctorialen
thesis.degree.nameDoctor of Philosophyen
thesis.degree.namePh. D. in Philosophyen

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