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Chinese certification bodies lack credibility and its improvement inefficient equilibrium

Author: LiXiang
Tutor: ChenYanYing
School: Dalian University of Technology
Course: Analysis and management of economic systems
Keywords: Certification Body Lack of credibility Repeated Games Government Relations
CLC: F203
Type: Master's thesis
Year: 2011
Downloads: 32
Quote: 0
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Abstract


Certification is defined by the certification bodies certify products, services and management systems comply with the relevant technical specifications or standards conformity assessment activities. Certification emerged as a result reduce the information asymmetry between the transaction needs, the certification market transactions can save costs and improve transaction efficiency. The importance of certification has been generally recognized, certified level of development of the industry as a measure of a country's market system soundness important symbol. Certification as a means of solving the problem of asymmetric information must be certified authenticity and accuracy of the premise, if the certification body to the outside world can not provide fair and accurate information, then authentication will lose its proper role, or even exacerbate parties to the transaction Information Risk. However, the certification itself there is a serious problem of information asymmetry, the certification body will also take opportunistic behavior. In recent years, the certification industry is growing very rapidly, but the lack of credibility of the certification body problem is very serious, the market phenomenon of repeated false certification, not only harm the interests of consumers, for China's commodity exports adversely affected, and even undermine social credit mechanism. In view of the lack of credibility of the certification body this problem, this paper from both endogenous and exogenous reputable certification body analyzes the decision-making mechanism. Then build a business, certification agencies and consumers to participate in the repeated game model, from the point of view of the low efficiency of equilibrium in the long-term credibility of the certification body missing state causes and detailed analysis of the inefficiencies caused by various factors balanced. After the introduction of the government relations studies, the establishment of a certification body constituted by the government and the KMRW reputation model to analyze the certification body under the supervision of the government's credibility could be achieved from low to high-efficiency balanced equilibrium efficiency improvements. The results showed that: poor information transparency of certification bodies to apply for certification of enterprises generally pay more attention to short-term profits, lower costs and charges of false certification, etc. are caused by certification industry into the reasons for the low credibility of the state; in strengthening the conditions under government supervision The certification body can achieve and maintain high efficiency equilibrium. Finally, this paper proposes to optimize the market structure of the certification industry, the introduction of non-profit organizations, and other measures to strengthen government regulation can promote the certification body gradually establish their own credibility.

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CLC: > Economic > Economic planning and management > Management of National Economy > Production industry management
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