The Art of Contract:Analysis Framework and Optimization Strategy of Reward System for Food Safety Risk Whistle Blowing
There exists serious information asymmetry in food industry.The public enforce-ments authorities with legal legitimacy exhausts for the cost in supervision and efficiency in enforce-ments dealing with millions of producers and dealers.As a popular strategy of information regula-tion,reward for food safety risk report is widely adopted by all provinces in mainland China.How-ever,the efficiency and effectiveness are questioned in practice.Thus,an analysis framework is for-mulated and thereby employed to explore the provincial reward system for food safety whistle blo-wing.Based the text analysis,three strategies including contract design,information management and incentives mechanism are proposed to improve the provincial reward systems.