The Study Of Price Regulation In Tap Water Industry

Tap water price regulation is the important compose of price regulations of natural monopolization goods. Because tap water involves natural monopolization and administration monopolization, it shows much complex. Using economic and political theory, I studied the tap water price regulation from views of government, water supply enterprise and consumer. Government as the main body of price regulation should know how to set reasonable price, so that water price will stimulate enterprises to reduce production cost. The paper also shows government should control price regulation, change the behavior of waiting for enterprise asking for huff, and investigate enterprise cost and market supply and demand information, amend the price law to restrict government behavior.The paper involves five chapters. The first chapter introduces the purpose of studying tap water price regulation. The second chapter analyses the reasons of tap water price regulation, from natural monopolization, administration monopolization and economic characters of tap water. The third chapter expounds the theories and means of tap water price regulation, involving regulation of level and structure of tap water price and tap water price regulation under information asymmetry and government capture theories. The forth chapter reviews the course of tap water price regulation in China, and then points out the problems of price regulation. The last chapter designs the aim of reform of our tap water price regulation, and brings forward some advice to the reform of tap water price regulation.