Study on the Supervising Mechanism of Ecological Products Market under Asymmetric Information

H. Y. Li, L. K. Hu, Z. K. Li

2018

Abstract

Considering a really bad situation of the ecological market, such as untruth prices, some manufacturers’ shoddy and using ordinary products instead of ecological products and so on, we focused on the government supervision. Firstly, we analyzed quantitatively the difficulties and obstacles of government supervising on the ecological product market under asymmetric information. Further, considering the government as decision-maker, we constructed the adverse selection model of government supervision to maximize the total social welfare and proposed the contract menu about transfer payment, production quantity, and price limit. In the last, we deeply analyzed the efficiency of the supervising mechanism and its effect on the ecological product market. The research results show that in the early stage of the market, the supervising mechanism can avoid the high ecological level manufacturers from obtaining the information rents, thus effectively restrain the overpriced phenomenon in the ecological product market. The results of this paper provide better theoretical support and decision-making reference for the government to supervise the market of ecological products so as to promote the benign and sustainable development of ecological products market.

Paper Citation

in Harvard Style

Li H., Hu L. and Li Z. (2018). Study on the Supervising Mechanism of Ecological Products Market under Asymmetric Information.In Proceedings of the International Workshop on Environmental Management, Science and Engineering - Volume 1: IWEMSE, ISBN 978-989-758-344-5, pages 703-709. DOI: 10.5220/0007564807030709

in Bibtex Style

@conference{iwemse18,
author={H. Y. Li and L. K. Hu and Z. K. Li},
title={Study on the Supervising Mechanism of Ecological Products Market under Asymmetric Information},
booktitle={Proceedings of the International Workshop on Environmental Management, Science and Engineering - Volume 1: IWEMSE,},
year={2018},
pages={703-709},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007564807030709},
isbn={978-989-758-344-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Workshop on Environmental Management, Science and Engineering - Volume 1: IWEMSE,
TI - Study on the Supervising Mechanism of Ecological Products Market under Asymmetric Information
SN - 978-989-758-344-5
AU - Li H.
AU - Hu L.
AU - Li Z.
PY - 2018
SP - 703
EP - 709
DO - 10.5220/0007564807030709