Research On Government Regulation Of The Monopoly Industry

The problem this paper studied is the government regulation of the monopoly industry in our country. First of all, according to the concrete national conditions of our country, the monopoly industry is divided into three kinds of forms, they are natural monopoly, market monopoly and administrate monopoly. It has a important character that natural monopoly is mixed with administrate monopoly, but market monopoly has not turned to the certain scale in our country as the main form of the western monopoly industry of developed country. So it is decided that we studied natural monopoly and administrate monopoly. In order to make "Pareto efficiency"into reality, the government adopts price control and entry control and tries its best to reduce losses of efficiency. During the transition from planned economic system to the market economic system in our country, the market mechanism is imperfect. But the government regulation still exist drawbacks, although it is an effective addition to market mechanism in the course of resource distribution. First, the government regulation agency is not dependent. It is usually responsible to the enterprises of the monopoly industry. It is apt to form the interest alliance between the agency and the enterprises. The power of regulation about the same enterprise is often dispersed into a lot of different agencies .It is easy to be the power vacuum. Second, the method of regulation is backward. Such as in the course of price control, it is very difficult for the agency to grasp the true price which enterprises took. Third, the agency lacks the corresponding supervision. The regulators have formed the long-term interest alliance with the persons regulated. They have a motive to make the policy which is favorable to the person regulated. So this has influenced efficiency of supervision. Fourth, the regulators lack corresponding legal basis when they make policy. It is not favorable to restrain the behavior of the persons regulated. The reformations of the government regulation system in the United States and Great Britain have been in leading position all the time in the whole world. In the process of historical development, through analyzing and comparative with the reformations of them, we draw the conclusion that with the development of science and technology the border of the natural monopoly industry shrinks constantly. The government should relax the regulation about economical operation, dispel the unreasonable regulation and introduce competition mechanism. But the shrinking range is not meaning that the disappearance of the natural monopoly industry. Deregulation is not equal to any interference. In some places the regulation even need strengthen. There are relative perfecting regulatory legislation and supervision mechanism when the United States and Great Britain reformed. This guaranteed corresponding basis and higher transparency when the policy was made and improved efficiency of regulation. From the analysis above, we should not only absorb the strong point of the regulation system of the United States and Great Britain but also innovate our regulation system according to the real national conditions of our country. Firstly, we should break the administrate monopoly and make the range of the government regulation narrow. Utilizing the recombination of the market structure, we separate the competitive market structure from the already existing market monopoly structure and make the range of the government regulation narrow, so as to form the effective competition pattern. Deepen the reformations of the property regulation, reduce the threshold of the market access, form pluralism of the investment subject, permit the private capital to enter the monopoly industry, and improve the vigor of enterprises. Secondly, we should set up the modern system of government regulation. In order to set up the government regulation system, this paper analyzed...