Abstract:
Traditional Chinese medicine market is a typical market with information asymmetry, which may lead to “lemons” problem. Third-Party Certification is efficient path to solve the problem of information asymmetry. For this reason geo-authentie and commodity classes certification seems to be very important. But as we know, information asymmetry happens in the stages of traditional Chinese patent medicines market. So a signaling transfer mechanism, which can deliver the quality signal, is badly needed in TCM market. This paper analysis and design of signaling transfer mechanism based on Third-Party Certification, which called quality prestige index of TCM enterprises（QPITCM）. QPITCM can display quality information as a signal run through the TCM market.
Fund：
National Natural Science Foundation of China (81130070,81072989)； National Science and Technology Support Program(2012BAI29B02,2012BAI28B002)；
Key words:
Information asymmetry; Quality prestige index of traditional Chinese medicine; Drug safety; Traditional Chinese medicine administration; Third-party certification
Reference:
Yang, G., Wang, N., Guo, L., & Huang, L. (2014). Analysis and design of signaling transfer mechanism based on third-party certification: quality prestige index of traditional Chinese medicine enterprises. China Journal of Chinese Materia Medica, 39(5), pp.925-928. （《基于TPC的中药质量信号传递机制的研究和制定--中药企业质量信誉指数和等级》）
Link: