ABSTRACT
By constructing a dynamic game model, this article explores the ‘optimal regulation’ and the food safety regulatory mechanism to be adopted when the food safety regulatory authority has to implement a certain level of regulation. In the short term, the actual quality of food can be improved by increasing the probability of sampling or the intensity of punishment. However, in the long term, the optimal path is to improve the production technology of sellers. A moderate level of supervision makes regulation more effective, while a threshold level of regulation can reduce welfare.
Acknowledgments
We thank the General Project of the National Social Science Foundation of China (21BJY032) for funding.
Disclosure statement
No potential conflict of interest was reported by the authors.