Information Asymmetry,Food Safety and Design of Regulation Institution

The root cause of the occurrence of food safety incidents is information asymmetry in food industry.To solve this problem,a third party winning confidence from consumers is needed on the market.This article,by constructing a dynamic game model,analyzes the rent-seeking behaviors of regulators under different food safety regulation institutions.It concludes that instead of the regulation by multiple departments currently existing in China,a unified national regulation department based on the chain of food industry has to be set up covering both agriculture and food sectors before food safety is effectively maintained.This conclusion has been proved by the evolution of food regulation institution in Japan.Finally this article advances some suggestions on how to perfect China's food regulation institution.