The Game Mechanism Analysis Of The Competition And Incentive On Product's Quality

The quality of products is one of the very important strategic problems during economic development, which is also one factor impacting national economy and people's living. Nowadays, however, the product qualities vary greatly in our country. From aspect, as one big country, we have gained one obvious share in the competitive international market with good quality product; but fake and counterfeit products prevail. This contradiction exist the same time, which is constraining our economy's normal developing and the public living quality's improving. And, it will reduce the social welfare, damage the market mechanism, only to lose the efficiency of resource allocation even mislead governments' macro policies. Because before consumers' purchasing, the quality of products can not be observed. This article mainly focuses on the mechanism and incentives producing low quality products to give preventive measures. This article makes use of game theory, information economy, institution economy and related micro-economic theories to set up game models, doing researches the decision selections during the course of producing and some factors influencing the qualities of products, lastly give according resolving measures. So the article firstly points out the damage brought by fakes, then anglicizes the economic reasons and mechanism, showing out the inevitability. Pure market mechanism could not eliminate counterfeit phenomena, which means governments should make up the inefficiency of market through administrative intervenes and law measures to have the product quality controlled within certain scope.