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Analysis on Game Theory of the Inspection of Vegetable’s Quality Safety in the Wholesale Market of Xinfadi

Author: XieHong
Tutor: ZhangKeMing
School: Beijing Jiaotong University
Course: Logistics Management and Engineering
Keywords: The vegetable wholesale market the inspection of vegetable’s quality safety government supervising game theory
CLC: F323.7
Type: Master's thesis
Year: 2010
Downloads: 225
Quote: 1
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Abstract


With the rapid development of Chinese economic construction, the food quality safety accident has become increasingly prominent, and food quality safety issues have increasingly attracted wide attention by the nation, government and community. Vegetable is a basic food which is nutritionally balanced and a healthy diet to people, so it is indispensable to people’s lives, and vegetable quality safety problem has become a chief problem related to people’s lives and health. As the largest circulation of vegetable market, the wholesale market has obligation to inspect the vegetable’s quality safety, and thus the problem vegetable could be cut in the supply node.By analyzing the vegetable’s quality control in the vegetable wholesale market of Xinfadi and quality inspection problems, we find that the inspection of current wholesale vegetable market is lack of standardization. Then the paper analyzes economically the inspection behavior of vegetable’s quality safety in the vegetable wholesale market, we find that the inspection activities could have not only economic benefits, but also spillover effects, and the achievement of this effect requires the government to impose mandatory force on inspection agencies in the wholesale market.Under the market economy condition, vegetable wholesalers would sell low-quality vegetable for the pursuit of the optimal sales revenue, and the competitive wholesale markets based on principles of maximizing the economic interest would choose to inspect vegetable’s quality safety at a small intensity, or not even a small intensity. So the improvement of these two cases requires the government intervention or regulation; however, regulatory authorities may not choose to supervise the inspecting agencies in order to maximize their own utility. In this case, it becomes extremely important that how to establish a more effective supervision mechanism to enable the three to choose their own behavior strategies based on the starting point is to achieve vegetable’s quality safety. In this paper, by means of game theory, we build the game model of vegetable wholesalers, inspection agencies, and regulatory authorities related to the inspection activities and analyze this game model in details. Finally, we make conclusions, such as re-supervising regulatory authorities, and designing the incentive mechanism of the inspecting vegetable’s quality safety and supervising the inspection, which has practical significance in supervising the wholesale market to ensure vegetable’s quality safety for regulatory authorities.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Construction and development of agricultural economy > Prices of agricultural products and markets
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