Table of Contents
Economics Research International
Volume 2015, Article ID 895842, 7 pages
http://dx.doi.org/10.1155/2015/895842
Research Article

The Effect of Quality Tracing System on Safety of Agricultural Product

1School of Economics, Renmin University of China, Beijing 100872, China
2Xi’an University of Science and Technology, Xi’an 710054, China

Received 28 September 2014; Accepted 16 November 2014

Academic Editor: Raouf Boucekkine

Copyright © 2015 Jun Zhao and Bin Zhou. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Frequent occurrence of food safety incidents in recent years has made analyzing safety of agricultural product in view of contract theory become academic research focus. Based on incentive theory, in this paper we establish a static game under the condition of asymmetric information and analyze how the “company + farmer” contract is influenced by a complete quality tracing system composed of ex-ante inspection and ex-post traceability. Meanwhile, we find out that a complete quality tracing system can increase the safety level of agricultural product and that ex-ante inspection and ex-post traceability can replace each other in the process. Finally, we put forward policy suggestion for the policy-maker to solve the problem of food safety.