Food Production And Processing Of New Technologies Lead To Market Failure And Government Regulation

In recent years, there have been heightened concerns about food safety. The causes of food insecurity involve a complex interplay of economic, social, political and technical issues. The safety of new technology food has drawn more and more attention. New technology food has some specific features in the way of utility which somehow may lead to the market failure, such as the delay of the negative utility information exposure, irreversibility of the negative utility, the asymmetry between consumers’discount rate of future utility and negative utility of food safety, and the objective hidden of the utility of food safety. The above assumptions are supported by the empirical research in this paper. Here we may argue that new technology in food industry must be tested for safety’s sake before it being brought into the market. We shall also conclude that the government should do more as to monitor the whole food making process, expand the coverage and trace of time of post-event error corrections and penalties, keep in track with the approved new food technology and continually renew the evaluation.