The Regulation By Antitrust Law In Natural Monopoly Industries

Antitrust laws intrude very deeply into our world. There are someexceptions, for example nature monopoly industries and China, in which thereare no antitrust laws. What's natural monopoly? In local water, gas, electric, ortelephone service, large capital costs relative to output may mean continuouslydeclining costs per unit of output. Such service can be provided at lower costsby one firm than by several. Conventionally, where there is natural monopolythere is little room for antitrust law. But it's exceedingly difficult to protect thepublic from exploitation and willingness to cut costs, improve service, andinnovate. So the traditional system must be reformed, especially in China. Among deferent projects about natural monopoly industries reform, themost important aspect is to regulate these industries by antitrust law. Since theregulation by antitrust law in monopoly industries has so much in commonwith the regulation in other industries, the characteristic of this kind ofregulation should be discussed in details. In the opinions of the writer, theadministrator, enterprise and regulator constitute the characteristic of this kindof regulation. So these will be emphasized in this article. To discuss the regulation, we should interpret why the regulation isnecessary. This paper is written in this way. In the first chapter, basic concepts of natural monopoly are analyzed. Thischapter summarizes and explains the former administration system in naturalmonopoly industries. Second chapter interprets why the regulation is necessary. The authoranswers this question in the views of economics, law, technology development, 3and WTO. Some characteristics of China itself are demonstrated in the third chapter.In this chapter, the writer demonstrates some particular reasons of theregulation by antitrust law in Chinese monopoly industries. The last chapter expatiates how to regulate and how to found theadministrator, enterprise and regulator. It's discussed in three aspects. Firstly,Chinese nature monopoly industries are analyzed in the views of economicsand law. Secondly the writer discusses the blueprint of the regulation. At last,we dissertate how to found the administrator, enterprise and regulator. In this paper, the author wants not only to declare the conclusion but alsoto demonstrate the truth and the process of justification. As a result, basictheories of law, economics and politics are stressed. On the other hand, factsshouldn't be neglected. So it's inevitable to analyze Chinese nature monopolyindustries. In fact, there are three kinds of monopoly. Consequently, we needdeferent plans for each of them.