Economic Analysis On Advertising Regulation System

This paper main discusses necessary of regulation and how to improve our advertisement——to form a completely legal system and establish an effective monitoring mechanism advertising operation. Firstly, the article carries on the general theory summary which the particularity of the advertising industry and the theoretical basis of regulation, and in summarizes in our country current advertisement market present situation foundation, from the perspective of Law and Economics, analysis of advertising firms for unfair competition by the way of cost-benefit analysis, then points out our country advertisement legal framework the flaw, and elaborated the flaw's reason from the legal supplies and the demand aspect and how to establish the complete advertisement legal framework. Finally, summarizes the developed country advertisement supervising and managing correlation experience, and unifies our country to be actual to establishes the effective movement the advertisement supervising and managing mechanism to propose the new mentality and the suggestion.The first part of the article described the particularity of the advertising industry and the theoretical basis of why we need to regulate it. Firstly, the paper describes the particularity of the advertising industry. And the advertising industry has the dual function and the value of information-oriented. The reason for regulation of the advertising industry is the main consideration of the following areas : 1, the externally of advertising. The advertising info influence surface broad, whether the exterior nature or the negative exterior nature, have a tremendous impact on all levels of life, so it is necessary to regulate this industry. 2, the partial information. Due to the different economic strength and specialization, producer is in the understanding of "complete information" level, but the consumers often "inferior information" and being a dominant position, Under such circumstances, the needs of the true message of advertising regulation of the social emerged.The second part of an article briefed our country advertisement market present situation. At present, China's advertising market advertisements exist in large quantities, main performance for advertisement form illegal and advertisement content illegal. Have a main form of illegal advertising in the form of "the advertisements news". And the advertisement content disobeys the principle to manifest is "the question advertisement".In the third part, the article use the way of economic to analysis the unfair competition behavior. Generally speaking, the illegal advertisement often take the oneself profit maximization as the goal, who has relatively stably preference illegal by chance with the pursue illegal advertisement income maximization rational main body. In decided whether the illegal advertisement, any is the illegal advertisement as well as how implements time what kind of illegal activity, we must consider the anticipated illegal income and the illegal cost, in particular the legal cost which brought from the illegal behavior as well as illegal advertisement opportunity cost. The unfair competition behavior also to be allowed to regard as in the certain significance one kind to be restrained to puts into production the rule the economic activities.The article fourth part has exposed the question which in our country advertisement law system. Along with advertising industry unceasing development, Our country preliminary shape multi-level, multi-positions advertisement supervising and managing legal system. But, the present advertisement supervising and legal systems still has the certain flaw. 1,Legislation system existence main question.2, the advertisement legal liability is not clear.3,advertisement law enforcement mechanism question. 4,"Advertisement Law" is unable the advertisement form question which solves newly appears. Such as the network advertisement, the star speak on another's behalf and so on.The fifth part of the article describes the reason which produced to our country advertising industry legal rules and regulations flaw from the angle of advertisement law supplies and the demand.First, the paper said from the advertisement law supplies aspect, the present stage our country advertisement legal supplies regarding the current economical and the social development condition is relatively deficient, mainly displays in:1, The advertisement law supplies resources is unreasonable.2, the advertisement law supplies production technical level is backward.3, the advertisement law social welfare had not achieved Pareto optimality.4, citizen law consciousness enhancement.Next, the article elaborate the advertisement law legislation market model. The reason of the legislation market and the traditional market movement is same, which is for the mutually beneficial reciprocal benefit. This article through to the Pelzman model analysis, elaborated the legislation how to affect regarding the rules and beneficiary. And points out both realize rules and regulations effectiveness maximization, simultaneously and satisfies the consumer group to the price and the producer group to profit dual satisfaction.Finally, we analysis legal advertisement from the law demand angle. The supplies and the demand mutually depend on for existence. Advertisement law demand usually influence on following several factors: 1,cost element, including opportunity cost, social cost, transaction cost and legal cost.2, Effectiveness change rule. Legal effectiveness may understand for the legal value, it reflects the object satisfies the attribute which the main body needs. Populace effectiveness which gain from the law satisfies has the certain limit, when the marginal utility is a zero hour, the total effectiveness has realized the maximization. 3,already saves legal order. Also saves the legal order to be ableto affect the people to the innovation purchase desire. 4, the preference legal demand. the preference legal demand refers to how much legal laws and regulations are used.The article sixth part is about the advertisement law system's international comparison and the model. The various countries all has its respective characteristic regarding the advertising industry supervising and managing, For instance in US, the management structure authority, supervising and managing key is bright really is its main characteristic; France regarding drugs advertisement stipulation all affairs big or small; But Germany is obtains from the legal provision, the stipulation is extremely strict; In Canada, the prominent characteristic of advertising industry supervising and managing is the consummation profession autonomy .The article seventh part proposed the establishment effective movement advertisement supervising and managing mechanism policy mentality: (1) further strengthening the advertisement legislation work; (2)adjusting advertisement surveillance management function, perfect advertisement supervising and managing system; (3)clearing about advertisement supervising and managing key, innovation advertisement supervising and managing way.