528 / 2024-04-25 19:43:50

How does it work: the impact of IoT on the choice of platform’s warranty policy

iot technology,warranty,online platforms,game

The advent of the Internet of Things (IoT) has revolutionized the way devices interact with each other and with their users, Leading to a paradigm shift in comsumption areas such as smart home appliances.This paper delves into the intricate relationship between IoT technology and the platform warranty choices available to consumers.Specifically，a game theory model is used to study an e-commerce setting in which an online platform provides warranty service and manufacturers sell their products on this platform. We are surprised to find that, with the introduction or increased deployment of Internet of Things technology, the profitability of platform warranty services may be compromised under certain specific circumstances, although sometimes the reverse is true.Our study undoubtedly overturns the industry's notion that "more is better" when it comes to Internet of Things technology.