Study On Antimonopoly In China

The word-monopoly has a long history. In Greek, it refers to a solo salesperson. Monopoly born with critics and the Adam Smith's criticism is the representation. It's always contacted by the concept-complete competition, which titles a manner of business with character of absolute decentralization under the assumptive condition without transaction cost. So, complete competition describes a Utopian state. The modern western economics explain monopoly as the lack of competition. The starting point of researching about modern monopoly is set by Cournot's idea, brought out after David Ricardo, which conclude that monopoly is the deviation to the principle of the equilibrium between the marginal revenue and the marginal cost. In late 19th century after mass concentration of production and accumulation of the capital, a group of monopoly enterprises with powerful control to the market emerged in the industrial country, such as Britain and Unite States. The activities of these enterprises had drought much attention from the scholars. Based on the studying of those activities, the theory of modern anti-monopoly was fundamentally formed. Along with the studying, research on anti-monopolization was promoted.Monopoly can be classified into economic monopoly and administrative monopoly. Economic monopoly including monopoly caused by concentration of production and natural monopoly characterized by the subadditivity of cost. Administrative monopoly is one kind of super-economic monopoly with the abuse of administrative power. Monopoly enterprises capture the monopoly profit through controlling the market price with monopolistic output, Consumer has to pay more before the optimal output. During the monopoly strip the consumer surplus, monopoly make inefficiency such as X-inefficiency.We prefer thoughts about the phenomena of monopoly and competition in the development of economic objectively. But in China, people get used to the life of monopoly with insufficient competition. This sensibility somehow distorts the logic of studying. There are so more criticism of free market competition, in the while we are lacking of advocate to it. There is times of out of control in the market indeed, but in the childhood of a free competition market criticism and misunderstand can only make themonopoly lives longer than we had thought and cause much more loses of social welfare.As a particular category of economic monopoly, The earlier studying of natural monopoly, which is related to the finitude and the concentration especially the imbalance of location of the natural resources. But with the development of economics, improvement of technology and the innovation of all kinds of substitute product made the privilege on the natural resources out of date and gradually endowed new explanations to monopolization. The new explanation begins in the late 19th or the earlier 20th century. It comes out from the studying on the economic of scale. Monopoly in these industries is considered reasonable and born of nature. Therefore, the government regulation is prevailing to reduce the negative influence of monopoly.In addition of the technology improvement and the booming of the economic of scale, those regulated industries began to lose the monopolization even if the economic of scale. After 1960s, pushed by privatize flashed in Britain, America and the other industrial countries, competition is effectively inducted into the formerly natural monopoly industry. But the conception of natural monopoly is not abandoned even though people realize that natural monopoly is not necessarily based on the economic of scale. The scholar, such as Baumol and so on made researching on the phenomena and begin to enclose the concept of subadditivity of cost to the definition of natural monopoly.It is believed in this article that natural monopoly with the character of strict subadditivity is a Utopian market state, identical to complete competition. As asymmetry of information and the limitation of traditional regulation, subadditivity of natural...