Research On China Network Industry's Efficiency On The Basis Of Pareto Improvement

Network Industry has a distinct characteristic of natural monopoly. It is a common sense shared by Western Economics circle that monopoly may cause low efficiency, therefore, how to improve the performance of Network industry and minimize its efficiency loss became a problem drawn much attention from the Economists.From 1960s, many foreign scholars made much analysis on the efficiency of Network industry, and put forward some improvement measures. Relatively, China started late on such issues, but we still made deep analysis and gave some policy guidance according to our country's status.On the basis of these theories, this article make a detailed analysis and argumentation on such industry as telecommunication and electricity power by adopting Pareto Optimum as the criterion of efficiency improvement, and calculous as analytic method.In the process of analysis, firstly, I talk about the current conditions of the Network industry and point out the malpractice existed in such industry, following, I set up a mathematic model to find a way of improving efficiency in Network industry. Then, I compare the solution drawn from the model with the current reform practice, and study the differences between the two, finally, find out a way to rectify such difference and point out the right reform measure in the future.In this article, I hope I could find the reason why the efficiency is low in network industry, and help the governments to find a way to improve the efficiency, by doing so, we hope we could raise the overall utility and satisfaction in our society, making our society more stable and happier.