Testing errors, supplier segregation, and food safety
研究了检测误差(灵敏度、特异度、抽样误差)如何影响买家区分安全与不安全供应商的能力,发现存在一个最大误差水平,低于此水平时不安全供应商会被阻止接受买家的报价,这为设计合同和政府监管提供了依据。
Abstract Diagnostic tests provide valuable information to buyers about credence attributes such as food safety and GMO content. Errors in testing, however, can mislead buyers and lead to problems such as adverse selection. The ability to segregate suppliers who can deliver safe food from suppliers who cannot depends on the accuracy of the test procedure. In this article we examine the effect of test sensitivity, specificity, and sampling error on the ability to segregate safe and unsafe suppliers. We find that there is a maximum level of error below which unsafe suppliers are deterred from accepting a utility maximizing buyer's bid price. The maximum error depends on the probability that a supplier's production is unsafe and the cost of producing an unsafe lot, among other things. Understanding this relationship makes it possible to design contracts and government regulations that discourage unsafe suppliers from trading.