Institutional Analysis On The Government Regulation And Reformation In China's Natural Monopoly Industries

Since the implementation of the reform and open policy, our country has reformed natural monopoly industries such as telecom, electric power, railroad etc. and obtained certain result. But bcause of the economic and technique characteristic of natural monopoly industry, and tradition of being administrative monopoly, the reform of natural monopoly industry in our country is not easy to implement. Upon the reform idea of easy first and then the hard, our reform of natural monopoly industry is rather later. Why these natural monopoly industries still haven't got high-efficiency after reformation? This paper considers that the course of industry regulation actually is the course of interest gambling between the regulation organization, regulated enterprise, consumer and other interest groups. Along with the development of regulation reform of natural monopoly industry, the original structure of interest has been changed, and the conflict between the different interest groups has been increasing. Due to the disequilibrium of the power between the interest groups in regulation reform, the reform of natural monopoly industry couldn't succeed. To prevent the regulation reform being at the wheel of the interest groups, we must keep to control the interest groups in the systerm .However , the most effective restriction comes from the power comparison and the restricting each other of the interest groups. So we say we should increase the restriction to the stronger interest groups ,and help the weeker ones in our regulation reform . The most important idea is to enhance the regulation to the government.This paper deeply analyzes inherent logic and particularity of governmental regulation on natural monopoly industry by using concept of interest groups and analysis method according to the analysis frame of theory of Industrial Economics and System Economics. Taking the typical industries of natural monopoly for instance, such as electric power, telecom etc., it analyzes the interest groups in regulation reform. Through the analysis of theory and cases, this paper also studies the model of interest groups in...