Abstract: It is a consensus in academic world that the risks in quality safety domain generated from asymmetric information conditions shall be governed by governmental regulation. The scholars have studied the social efficiency under the common functions of government quality safety regulation and legal liability regulations and analyzed the domains where government quality safety regulation plays functions and the means. It is generally acknowledged that the government regulation plays a positive function in this domain. However, the study of economists also discovered and analyzed the government failure (regulation failure) generated from overregulation in quality safety domain, and the paradox of insufficient regulation formed on the basis of overregulation. We can learn from the literatures that the quality safety regulation of government is the necessary means to govern the failure in quality safety market regardless of the dual character. It shall eliminate the disadvantages with information regulation, inventive regulation, self-implementary regulation and other methods.
Keywords: Quality Safety; Regulation; Responsibility; Market Failure; Government Failure