Property Right, Regulation, And Performance

For the scale economy, the scope economy and sustainity, the natural monopoly industry is considered that it had better be managed by one or minority several enterprises. In order to rectify the achievement loss which the monopoly enterprise "restricting production and raising the price" brings, the economist and the policy-maker advocated adopting special economic policy. Before 1970's, the natural monopoly industry is monopolized by either state-owned enterprise or regulated private enterprise. But, according to the natural monopoly theory and the policy conclusion natural monopoly industry in various countries generally has low quality and high price and the serious loss problem. The consumer not only has not been able to enjoy the benefit of the scale economy and the cost subadditivity of the natural monopoly mechanism should bring, instead receives low quality and high price and so on pain of the monopoly malpractice. At the same time, the government not only increased the massive rules and regulations cost, but also had to undertake the large amount loss of the enterprise.The fierce contrast between the theory and the reality has caused the western developed countries to carry on the resolute reform to the traditional natural monopoly industry, in which the most important action is breaking the natural monopoly and the introduction of competitive system since 1970's. Privatization and deregulation are two important reform tidal current. The practice proved that, the competition introduction enormously improved the service, the operation efficiency and the social welfare of the natural monopoly industry. But, if the similar reform measure is introduced to the natural monopoly in the transition economy, whether the similar effect can be received? Whether in the transition economy has the possibility to introduce competition? The property-right shift whether can enhance the achievements? How does the regulation influence the industrial achievements? This article attempts to analyze the influence of the property-right shift, the competition introduction and regulation on the natural monopoly industry in gradually transition economy.The paper analyzes the basic frame of the reform of the natural monopoly industry in the transition economy by the beginning of the theory and the real diagnosis analysis literature on performance research. On this foundation, the paper...