| In recent years, an increasing number of provinces and regional government have issued "municipal public utility franchise regulations" and implement it, which shows the Government to implement public utility franchise, will become the traditional utility business model of China's reform and the direction of the mainstream. However, our franchise mode of operation is a single concession, not simply select the tender (first-price sealed-bid auction), that is, select the "beauty contest" model, but neglects the government regulation.These methods can not be truly effective solution to utility infrastructure optimal allocation of resources, as well as utility products, reasonable pricing, quality service and efficiency of operation and other issues.This article analyzes the development trend of China's public utilities and the existence of problem, we should sum up the experience of the reform of the international public utility and seek a suitable hybrid model of the development of China's economic reform, namely, the licensing and government regulation combined reform model. Next, we bases on our country's practice, based on public utilities' management characteristic and its characteristic, analyzes public utilities' project type in detail, and use internationally newest auction theory, analyzes different auction way's characteristic, has attempted to discover a set auction mechanism to adapt our country national condition public utilities franchise rights. The research discovered that to these not separable public utilities project, it is suitable to use the first price auction and the English auction, under the standard model, the income of these two kinds of auction is the same. But softens terms, considered under the realistic environment possibly produces each kind of information asymmetrical, tenders the person risk withstanding degree to be different, the auction cheat and so on,the choice English auction is better. But if the government is to increase the social welfare, it is better to choice the first price auction. To the separable homogeneity project, it is suitable for with the discrimination price auction and the uniform price auction. Under the datum model, the income of two kinds of auctions is equal. But the analysis actual situation discovered that selecting the discrimination price auction to be better. When the cost of operation is approximately same, suggested that selecting the uniform price. To the separable neterogeny project, suggested that the choice shouts out the price the proxy to auction upwardly. And a detailed analysis of our franchise operations by public utilities exist in technical and non-technical barriers, especially analysis deeply for a franchise major risk auction --- Auction fraud, and China's market-oriented public utilities franchise the smooth implementation of some suggestions and countermeasures. |