On The Application Of Fair Competition Review System In Natural Monopoly Industry

The traditional theory of natural monopoly holds that natural monopoly industries are characterized by economies of scale,economies of scope,and sub-addibility of costs.Therefore,it is argued that natural monopoly industries are not suitable for competition and should implement monopoly operation mode under government regulation.In the early stage of China's economic development,natural monopoly industry has been playing an important role in the national economy.With the development of economy and technology innovation,the traditional natural monopoly industry in China's natural monopoly nature tend to be weakened,the scale economy effect and scope economy effect is waning,gradually reduce the production cost,natural monopoly industry has been developed from the past completely monopoly industry attribute to the coexistence of monopoly and competitive business industry attributes this direction.However,the natural monopoly industry relies too much on government regulation and lacks the regulation of market mechanism,resulting in the dislocation of the relationship between the government and the market in the resource allocation of the industry,which seriously hinders its benign development.It has become an urgent task to scientifically define the scope of government functions and strictly define the role space of government regulation and market mechanism in the reform of natural monopoly industries.The natural monopoly industry reform aiming at introducing competition mechanism and relaxing government regulation is in a crucial period and deep water area.Although government regulation is the basic choice to rectify the market failure of natural monopoly industries and protect the public interest,the lack of "bottom line" government regulation can easily stifle the innovation and vitality of the industry economy.Fair competition review system,as the top-level design of regulating the government's improper intervention in market operation and restricting the government's excessive exercise of regulatory power,fits the reform goal of China's natural monopoly industry.Reflections on fair competition of the operation situation of censorship to study can be found,is not only a science fair competition review set the power of the government and the market boundary,to ensure that the government regulation in a neutral position,but also break the traditional rituals of excessive government intervention in market,the important way of the administrative monopoly effectively.Natural monopoly industry in our country the government improper control the spread of behavior directly hinder the market-oriented reform process of the industry,thus to make up for the existing research on deepening the reform of natural monopoly industries of deficiencies,break through the practice of natural monopoly industry marketization reform,should actively with fair competition to review the new system.The applicable censorship through fair competition,can effectively to be issued or have already implemented compete in the natural monopoly industry policies and measures of evaluation,and prevent excessive or inappropriate in natural monopoly industries the government regulation behavior,inhibition of government regulation for natural monopoly industry market competition caused by the negative effect of policies and measures to ensure the natural monopoly industry impact on market competition as the necessity,suitability and rationality.