Social and Behavioral Sciences Commons^™

Reactions To Market Failure And Approaches To Reduce Market Failure, Yingzhe Cheng

Economics ETDs

Market failure can have serious negative consequences on human welfare, including various health risks to people. How to best correct market failure becomes an important question. Different approaches may reduce market failure, such as direct government regulation, or market based approaches. This research explores consumers’ or societies’ reactions to market failure and approaches to reduce market failure.

The first study uses a random utility model and a choice experiment method to estimate Chinese parents’ marginal willingness-to-pay for potential policy changes that target overall food safety. Results suggest that a policy that provides both direct government regulation and information to create …