Economics at your fingertips  

Effects of input capacity constraints on food quality and regulation mechanism design for food safety management

You-hua Chen, Sun-jun Huang, Ashok Mishra () and X. Wang ()

Ecological Modelling, 2018, vol. 385, issue C, 89-95

Abstract: Input capacity constraints means a firm cannot make its output decision based on the first - order optimal condition of profit maximization because it does not have enough inputs. Input capacity constraints have a significant effect on production quality and firm competition, especially on food safety management. This paper tries to provide a new perspective for quality operation in supply chain management. It also designs a new mechanism for quality regulation. After distinguishing between quantity-sensitive input capacity constraints and quality-sensitive input capacity constraints, this paper demonstrates a theoretical analysis about the impact of input capacity constraints on food quality and quality regulation by game theory. The results show that both kinds of capacity input constraints lead to a lower level of output, quality and consumer surplus, but a higher level of prices. In this study, we design a quality regulation to stimulate the growth of high quality food products. More importantly, this paper proves that reward is more effective in food quality guarantee programs than punishment or fine based programs. The conclusions are helpful for addressing food safety problems for both the supervisors and firms.

Keywords: Input constraints; Quality control; Food safety; Quality regulation; Game theory (search for similar items in EconPapers)
JEL-codes: Q18 L13 D24 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.ecolmodel.2018.03.011

Access Statistics for this article

Ecological Modelling is currently edited by Brian D. Fath

More articles in Ecological Modelling from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-05-02
Handle: RePEc:eee:ecomod:v:385:y:2018:i:c:p:89-95