Game-theoretic Study On Natural Monopoly Industry Deregulation And Mechanism Design In China

Telecommunication, electricity, railway, airline, oil and gas, water etc. have undergone deregulation reform in USA, UK from 1970s.This reform have obtained good effects. Many nations imitate in succession under leadership of the United States and UK, deregulate natural monopoly industry and public utilities and introduce competition. Deregulation means reduce or cancel some regulation and rules including market entrance, market exit, price, investment, finance and account. The objective of deregulation includes introduction of competition, decreases fee level and improves technology progress.China's monopoly industries also continue to explore suitable reform mode and path for China's national conditions and have achieved some success. However, due to historical reasons, China's reform of monopoly industries has just started, the effect is not significant, with the restrictions of many deep-seated problems. Reform of monopoly industries in China is lack of strategic design, with occasional, non-continuity, not completely, iterative and non-path dependence and other characteristics. At present, China's monopoly industry is still relatively high prices for consumers or larger burden especially for low and middle-income families; the efficiency of monopoly industries is still relatively low, not conducive to the country's international competitiveness; the income of workers in monopoly industries is too high, not conducive to building a harmonious society; the regulation system of monopoly industries is unscientific, not conducive to the reform of monopoly industries self-promoting. Against this background, the report to 17th National Congress of the CPC said that we will deepen the reform of monopoly industries, introduce competition mechanism and strengthen government supervision and supervision by society.Deregulation of natural monopoly industry reform is not only an economic and technical issue, but a political issue, or is a political and economic problem. Monopoly industry deregulation reform is essentially a re-adjustment of interests and balanced process, which will lead to various conflict interests between different interests groups. The new era and new stage, the success of monopoly industries deregulation reform depends on the interests of the smooth realization of the reforms and adjustments, the need to fully adjust interest as a new phase of reform of monopoly industries and the major issues important tasks. Deregulation will have different impact on different interest groups such as nation, regulator, monopoly enterprises and consumer. Some interest groups will benefit from it, interest of some groups will be impaired. The interest groups, whose interest be damaged, will hold back the reform. Then, the deregulation reform will be aborted. Therefore, it is essential to study the impact of various interest groups, the various interest groups on deregulation attitude, as well as strategic responses and influence power, the game equilibrium between them comprehensively and systematicly. The reform needs to design a feasible mechanism to guarantee the interests of all group can supports the reform and achieve the win-win outcome.This thesis study the deregulation reform of natural monopoly industry in China from the perspective of New-Political economics, transition economics and institution changes, using micro-agent and macro-system methods. We examine the impact of deregulation reform on nation interests group, regulator interests group, the monopoly interests group and consumer group respectively and bring them together to study the game equilibrium of four interests groups. Then, we try to design the deregulation mechanism and path by institution analysis methods. So, this thesis has not only realistic significance, but also theoretical value.