TITLE:
The Impact of Government Supervision and Consumer Purchasing Behavior on Food Safety
AUTHORS:
Yuan Chen, Xiaogang Tang, Kangyu Chen, Hui Liu
KEYWORDS:
Food Safety, Reputation Mechanism, Government Supervision, Customer’s Willingness to Pay
JOURNAL NAME:
Journal of Agricultural Chemistry and Environment,
Vol.3 No.4B,
October
28,
2014
ABSTRACT:
This paper aims at the theoretical analysis
to the impact of government supervision and consumer purchasing behavior on
food quality security, so as to look for safety strategies and measures to strengthen
and improve the level of food safety in China. Reputation mechanism is
introduced and Bayesian approach is based on, in which government supervision as
well as consumer purchasing behavior is taken as crucial factors to impact on
the food quality security. As to the proposed quantitative indicators,
government supervision includes exposure rate, fine and etc.; at the same time,
consumer purchasing behavior includes consumer’s WTP for security food and consumer
expectations to food safety. Taking China’s dairy industry as an example, it
makes simulation by Netlog. The results show that consumer purchasing behavior alone
has little effect on the dairy companies’ decision-making to be honest or
counterfeiting enterprises. However, combination government supervision with purchasing
behavior has great impact, and plays very good effects on food safety.