Coregulation Supervision Strategy of Drug Enterprises under the Government Reward and Punishment Mechanism

Siyi Zhang, Lilong Zhu and Abdellatif Ben Makhlouf

Complexity, 2021, vol. 2021, 1-16

Abstract: Considering the government reward and punishment mechanism and the collusion behavior between third-party testing agencies and drug enterprises, based on the coregulation information platform, this paper constructs an evolutionary game model of coregulation supervision, which involves the participation of local government, drug enterprises, and third-party testing agencies. The stable equilibrium points of each participant’s strategic choices are solved. The stability of the strategic combination is analyzed by Lyapunov’s first method, and MATLAB 2020b is used for simulation analysis to verify the influence of each decision variable on different players’ strategic choices. The results show that, firstly, the government-increased awards and penalties will promote the integrity of drug enterprises and noncollusion of third-party testing agencies, but it is not conducive to strict performance of regulatory responsibilities by the local government. Secondly, the provision of real drug test reports by third-party testing agencies to the coregulation information platform can supervise drug enterprises and restrict local government to perform its duty. Thirdly, the central government’s punishment to the local government’s dereliction of duty is significant to enhancing the robustness of drug enterprises’ integrity operation. Furthermore, reasonably setting rewards and punishments and perfecting the coregulation information platform will help form a coregulation pattern of government supervision, self-discipline of drug enterprises, and social supervision. Finally, drug quality is highly related to whether drug enterprises operate with integrity. Standardizing coregulation supervision of drug enterprises’ integrity operation is the key to ensuring the safety of the source of drug quality. Therefore, this paper enriches and expands the theoretical basis of the coregulation supervision of drug enterprises’ integrity operation and proposes corresponding countermeasures and suggestions.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:hin:complx:5865299

DOI: 10.1155/2021/5865299

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