Price-Quality Association Studies Of Chinese Herbal Medicines Based On Regulation Economics

Since2009, under the impetus of new medical reform, there are dramatic changes in our country.Deepen medical and health reform, accelerate the development of medical and health sector, meet the growing health needs of the people and constantly improve the quality of health of the masses. These are important measures to safeguard social fairness and justice and improve the quality of people’s lives. Chinese medicine is not only the foundational resources of medical and health system, but also the source of technological innovation and new economic growth point. Natural herbal sexual and toxic side effects are the characteristics and advantages of Chinese medicine treatment. However, due to the dual attributes of both herbal medicines and agricultural products, the price and the quality affected by the difference between species differences, the origin of medicinal parts, processing methods and other factors. The phenomenon of shoddy or impurities and price fluctuations are frequently appeared on the herbal market. Such problems severely weakened the treatment effect of traditional Chinese medicine, leading to a decline in social reputation, reducing the social identity, which will ultimately affect the development of the Chinese medicine industry.This paper argues that the status quo of Chinese herbal medicines prices and the study of price-quality association. Focus on building associated system between quality and price. Combined with a large number of price data to analysis of the price volatility in recent years detailed. Using Cobweb Model to describe the root cause that the prices showing "Spider-type fluctuations".To analyses the impact of price changes on the supply and demand. The use of data analysis methods to study the price difference between the different quality grades of Chinese herbal medicines in order to measure the price differences between the different quality, then to associate quality with price. In the view of Regulation Economics, proposed the suggestions of promoting price stability and grading competitive prices. Not only provides a guideline for government departments to develop appropriate policy, but also has practical guidance on the management and herbal medicines market price regulation.