Reducing Antibiotics in Agriculture: A Game Theoretic Framework Involving Customers, Producers, and Regulators

The overuse of antibiotics in livestock production, which constitutes about 73% of globalantibiotic consumption, presents a serious public health crisis, primarily due to itsassociation with the rise of antimicrobial resistance (AMR). This issue has gainedsignificant attention, as the United Nations has identified the inappropriate use ofantibiotics in animals as a key factor contributing to AMR. This is a big threat to globalhealth, a concern that is also pertinent in Hong Kong.As public awareness grows, consumers are increasingly favoring products labeled as"Raised Without Antibiotics" (RWA), driving a burgeoning market for antibiotic-freemeat. However, the integrity of the RWA label is under scrutiny, with research revealingthat a substantial percentage of RWA-labeled beef still contains antibiotics. Thisdiscrepancy not only erodes consumer trust but also creates financial challenges forhonest producers who adhere to antibiotic-free practices.In light of these concerns, regulatory agencies have announced plans to enhance theverification process for RWA labels. This research project intends to model thegovernment's audit decisions within a framework that considers the strategic behaviorsof producers and the rational decision-making processes of consumers. By employing asequential game approach, the study will examine how the government's audit levelsinfluence producers’ choices between conventional and antibiotic-free methods, and howthese choices, in turn, affect consumer trust and purchasing behavior.The findings of this project will provide valuable insights and recommendations forimproving label integrity and incentivizing more producers to adopt antibiotic-freefarming practices. Ultimately, the research aims to contribute to reducing antibiotic usein agriculture, thereby mitigating the risks associated with AMR, while enhancingconsumer confidence in food safety and sustainability within the livestock industry.