Research On The Governance Mechanism And Performance Of Minimum Quality Standards

Recent years,after the Sanlu milk powder incident,the "Black Flour", "Waste Oil",and other food safety incidents have been exposd and product quality issues have become the focus of the community. Product quality issues have serious impact on people’s health, damage the government’s image in the eyes of the public. Furthermore,the exposing of problem products will bring enterprises huge losses. These have reduced the overall welfare of society. In the situation of complete information,the buyer and seller are aware of the quality of products, so the buyer will pay a high price for high-quality produts and a low price for inferior-quality products. But, in the real situation, the dislocation of market mechanisms and legal regulatory mechanisms will lead to information asymmetry and this is market failure. At this time, the government should intervene in the market to regulate. Government regulation is an effective way to improve product quality and the means of government regulation include Label Management, Access Certification, Minimum Quality Standards and so on. Measures the government often adopt is Minimum Quality Standards.This article first analyses the inefficiencies caused by asymmetric information, which draw forth the effective means to control product quality problems is Minimum Quality Standards. Then the author uses mathematical tools to analyze the Minimum Quality Standards of governance mechanisms. In the contrast of the two developed countries United States, Japan and the two developing countries Vietnam, India, this article analyses the Minimum Quality Standards level of China. Finally, it introduce the Minimum Quality Standards system of China, the United States and Japan,and make a suggestion for the situation of China. This paper is divided into six parts. The introduction describes the background, purpose and significance of topics, the research status at home and abroad and the analytical methods and innovations of this article. The second chapter analyses the game between the producers and consumers in complete and incomplete information. The third and forth chapters are two central part of the article, and respectively analyses the governance mechanisms and the Minimum Quality Standards level of China. The fifth chapter describes the factors that affect the implementation of Minimum Quality Standards in China,and the last chapter describes the quality standards system of China, America and Japan and put forward specific recommendations.