Abstract:Food safety issues (including the safety of GM food) is closely related to “adverse selection” behavior of food production enterprises, and governments need to adopt corresponding policies to correct “market failure” and provide adequate market information for supply and demand sides. Game analysis shows that the government needs to play its part in the following areas: improving the food safety supervision laws and regulations, implementing strict quality certification system; strengthening supervision and incentives for law enforcement agencies, making a clear supervisory responsibility; imposing tougher punishment on illegal enterprises.