The effect of the inspection information sharing policy on quality‐oriented food production in online commerce

Yida Zhai and Guanghua Han

Managerial and Decision Economics, 2022, vol. 43, issue 1, 84-96

Abstract: Food products are normally classified as credence goods, and their quality cannot be fully ascertained by consumers even after being consumed. Online commerce exacerbates information asymmetry, which breeds a market filled with low‐price and poor‐quality food products. This study aims to examine whether certificate authority's inspection information sharing policy (IIS policy) can improve food quality in online commerce. The results suggest that producers tend to provide high‐quality food products, whereas both the online platform and food producers can earn more profits by adjusting selling price and commission fees under the IIS policy. Meanwhile, consumers also benefit from IIS policy.

Date: 2022
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https://doi.org/10.1002/mde.3360

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:43:y:2022:i:1:p:84-96

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