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Analysis of the "Lemon" Problem in China's Food Market

Bingbing Sun


As the income of Chinese residents increases, the demand for high-quality food is also growing. However, there is a serious information asymmetry in China's food market and the resulting "lemon problem". This paper analyzes the causes of the "lemon problem" from the perspective of demand, supply and economic structure, and proposes countermeasures for "removing lemons" on this basis: first, the government should strengthen supervision, second, production operators should take the initiative to transmit information, and third, consumers should carefully screen information.


Food Market; Lemon Problem; Lemon Removal

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DOI: http://dx.doi.org/10.18686/fm.v8i4.5438