The Study Of Market Order Supervision

Effective governments' supervision over market plays a very important role in establishing favorable market order and therefore ensures the healthy and sustaining development of economy. In the process of economic transformation, serious market disorder and the insufficient institutional supply by governments have resulted in a decreasing efficiency and accordingly encumbered the establishment and development of China's market institution . Thus, finding the reasons for the inefficiency and providing a reference for the following appropriate reforms bear a realistic meaning for establishing and maintaining well-ordered market order which guarantee the rapid, highly-efficient and steady development of China market-oriented economy.Based upon a theoretical framework concerning institution and market order, this paper sheds a light on the current disorder situation that China's market is faced with from the view of market entity to market behavior. After analyzing the market supervision institution of governments by incorporating modern insights in institutional economics and game theory, this paper finds out some related institutional limitations and thereby offers some policy options.In a nutshell, China's market disorder mainly manifests itself in the aspects of market entity disorder, market object disorder, market trade-off disorder and market competition disorder. Due to the immaturity of formal and informal rules in market supervision institution , governments fail to exercise an effective supervision on market order. By achieving the efficiency in supervision, this paper suggests the following policy options. Firstly, modify or straighten up the current related order and regulations by legislation so as to further improve China's market supervision institution. Secondly, give an emphasis on and make a good use of market informal order, meanwhile, introduce credit mechanism and make a common local culture of trust work along. Thirdly, set up an appropriate market supervision institution by...