Study Of Public Utility Regulation Pricing Theories

Since socialist market economy system was put into practice in China,the government has unloosen a majority of prices.Thus,price is decided by supply and demand and exert its quantitative function. Meanwhile,the measure can effect sensible allocation of infrequent resources.Because of market failure induced by inherent vice, it's necessary for the government to regulate the prices of some industries,such as the industry related to national security,natural monopoly industry and the industry supplying important public goods and services. In the eye of characteristics of the industries,public utilities are involved in infrastructure or the departments supplying public goods and services,such as railway, telecommunication,gas,tap water and so on.Public utilities have natural monopoly and welfare characteristics.At present, price contradiction is glaring in the field of public utilities.The thesis makes elementary researches on price formation of public utilities and analyses the rationale of regulation price.Meanwhile,the thesis compares advantages and vices between some kinds of typical public utility pricing models.Then,the thesis brings forth a kind of regulation pricing model of China's public utilities.Because the subjects researched are involved in many industries,the thesis makes a concrete analysis of towns water price and brings forth a kind of regulation pricing model of towns water.At last,the thesis brings forth an urban water price scheme in Suzhou.