theeffectofunannouncedinspectiononpreventionofdrugfraud

	theeffectofunannouncedinspectiononpreventionofdrugfraud
	Zhang Manman 1; Zhang Juliang 1; Cheng T C E 2; Hua Guowei 1; Yan Xiaojie 3; Liu Yi 1
刊名	journalofsystemsscienceandsystemsengineering
	2019
卷号	28 期号:1 页码:63
ISSN号	1004-3756
英文摘要	Alarge number of incidents related to fake/inferior-quality drugs have occurred in China in recent years. In order to reduce drug crimes, the China Food and Drug Administration (CFDA) has exploited the new supervision approach, i.e., unannounced inspection (UI), since September 2014. However, the effectiveness of UI in driving drug producers to put more effort into meeting the requirements of Good Manufacturing Practice (GMP) is yet to be ascertained. In this paper we apply game theory to study the effects of UI on the prevention of drug fraud, drug producers' profits, and social welfare under scenarios of complete and incomplete information. We show that UI is not always an effective way of supervision. Specifically, if the upper bound on the punishment is not very large, UI can drive the firmto make the largest self-supervision effort only when the firm's technical level is high and the supervision cost is low. Otherwise, UI cannot drive the firm to make the largest self-supervision effort. Under incomplete information, firms with a high technical level would adopt more self-supervision and make more profit than those with a low technical level. Moreover, we design a new mechanism under incomplete information that can incentive drug producers to make greater self-supervision effort to meet the requirements of GMP under certain conditions.
资助项目	[National Natural Science Foundation of China] ; [Program for New Century Excellent Talents in University]
语种	英语
内容类型	期刊论文
源URL	[http://ir.amss.ac.cn/handle/2S8OKBNM/42709]
专题	中国科学院数学与系统科学研究院
作者单位	1.School of Economics and Management,Beijing Jiaotong University 2.香港理工大学 3.中国科学院数学与系统科学研究院
推荐引用方式 GB/T 7714	Zhang Manman,Zhang Juliang,Cheng T C E,et al. theeffectofunannouncedinspectiononpreventionofdrugfraud[J]. journalofsystemsscienceandsystemsengineering,2019,28(1):63.
APA	Zhang Manman,Zhang Juliang,Cheng T C E,Hua Guowei,Yan Xiaojie,&Liu Yi.(2019).theeffectofunannouncedinspectiononpreventionofdrugfraud.journalofsystemsscienceandsystemsengineering,28(1),63.
MLA	Zhang Manman,et al."theeffectofunannouncedinspectiononpreventionofdrugfraud".journalofsystemsscienceandsystemsengineering 28.1(2019):63.