Game Analysis On Food Safety Of Supply Chain And A Study On The Incentive Mechanism

Food is necessary for people's living; and its safety is closely related with each one of us, largely affect people's livelihood. In the same time, because of frequent incidents of food safety in the recent years, food safety problem has been extensive concerned by the community.Food safety is a complex social problem; its solution depends on economy developments, technology advances and consumer awareness rising. This paper selected food safety as the main line, and explored how to guarantee food safety in food supply chain. As food's searching, experiential, trustful characteristics, the information asymmetry in food supply chain is especially severe. In this case, by the application of information economics, game theory, principal-agent theory, the paper constructed game model and incentive mechanism in food supply chain, analyzed and discussed the strategy equilibrium. Specifically, the study includes the following aspects:(1)Analyzed food safety problem form the internal supply chain. The analysis covers the beginning, middle and terminal parts of food supply chain. The conclusion shows that repeated game and reputation mechanisms and fully play the role of supermarkets can help raise the level of food safety.(2) Analyzed food safety problem form the external supply chain. First, introduced the adverse selection in food market and discussed the externalities of food safety, pointed out that food safety need of government intervention. Second, analyzed the government's supervising process by"paradox of incentive".(3)For the information asymmetry in food market, the paper paid more attention to signal game model between food producer and consumer, and discussed whether existing equilibrium and the conditions of its existence. Next, leaded the bounded rationality and contract to the food supply chain, discussed the evolution trend between farmer and dealer, finally, based on previous research, proposed some suggestions.(4)Applied the theory of agency, and based on the analysis of game models which include food consumer-food producer and food producer-farmer, consider such factors as the price and certification test, constructed incentive mechanisms, in order to promote the supply chain upstream consciously improve the level of efforts, and produce high quality and safety food. Then, analyzed the factors of incentive, gave some suggestion for food security.(5)Finally, in the current food safety situation, and based on the previous study, proposed the governance of food safety in food supply chain. These methods include improvement of legislation,give full play to government functions; improve consumer awareness; reputation mechanism and brand strategy; build food information trace back system; encourage upstream and downstream of food supply chain closely coordinating.