The Evolution Of Monopoly Theory In Western Economics

With the further development of the opening and reform, the companies with big scales have been growing up in China. Therefore, the topic of Monopoly has become the focus of discussion. Domestic economic scholars'study about the theory of monopoly is serious impact of the structuralist approach of the Harvard School in 1930's, and mostly confined to research ideas in the SCP. They are more focused on some problems which the economic reform in China are urgently needing to solve, While the basis of monopoly theory which is important to the anti-monopoly practices and competitive strategy implement has not given enough attention, particularly the literature of the evolution of monopoly theory is even more scarce.From the aspects of monopoly's historical evolution,this article discusses the problems during different times,such as the historical background in which the monopoly theory put forward, scholastic core contents and major theoretical viewpoints, and general applicability and limitations of their theory. Through the research of monopoly theory in the mercantilist period, classical period, neo-classical period and contemporary era, focus is to clarify the process of development of the monopoly theory, understand the main theories and ideas during different periods, eliminate misreading and prejudice the real people throw doubt upon to some of the classical theory, attempts to provide more reliable theoretical basis for reform of monopoly industries in China.In a long time, people always like to opposite to monopoly and competition, and think that monopoly is the biggest threaten to competition. In fact, from the evolution of the monopoly theory, not all the monopoly is disadvantage to economy development. Some are inevitable phenomenon in the process of market competition, which gradually disappear with the dynamic competitive process, and others came from artificial barriers in the external market, which are unlikely to eliminate, only to be control of these monopolies, can market reform ensure the smooth progress.The meaning of the monopoly traces to government privileges. Early classical period, Adam Smith and other scholars strongly criticized what mercantilism state interfere to market's free competition, In fact, until today, the problem hindering the market competition mechanism still comes from the administrative monopoly. If not government support, monopoly power can not go on prosperity in a long-term, and the fact that government restricts and controls the market destroys the dynamics competitive process of market. The real purpose of anti-monopoly should eliminate human's interference, and against the so-called government-mandated monopoly, which is also called administrative monopolies.It is benefit for the rationality judge of enterprise competition behavior during imperfect competition, and reasonable evaluation of the social costs and impact of monopoly as well as providing more reasonable ideas to the reform of monopoly industries in China by strengthening the research about the historical evolution of monopoly theory and interpreting in-depth the reason of monopoly from the aspect of economics.