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

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  • Yida Zhai
  • Guanghua Han

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.

Suggested Citation

  • Yida Zhai & Guanghua Han, 2022. "The effect of the inspection information sharing policy on quality‐oriented food production in online commerce," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 84-96, January.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:1:p:84-96
    DOI: 10.1002/mde.3360
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