The Regulation-reform Research Of Natural Monopoly Industry In China

Since 90s of the 20th century, China has accelerated the reform pace of natural monopoly industry and made the top-down reform arrangememt. Meanwhile, social circles which mainly composed by consumers send out a powerful voice requiring the reform of natural monopoly industry. Therefore, it was of great significance to make the regulation-reform research of natural monopoly industry in Cina.This thesis has took the market failure and government failure as the logic starting points of research. First, the thesis combed the western economic research theory of the relationship between monopoly and competition, then made local equilibrium analysis and general equilibrium analysis based on this theory and argued that natural monopoly led to market failure.Second, the thesis explained the necessity of government regulating natural monopoly industry and the regulation route. Furthermore, the interest of the assumption group in regulation activities was studied and compared with social benefits to argue that government regulation led to government failure.Third, this thesis has argued that the government regulation of the natural monopoly industry required the public choice of regulation policies from the perspective of public choice theory. It mean that the demand-side of government regulation policy (the manufacturer group and consumer group) and the supply-side (the assumption group) had to take place in the policy formulation process in order to inhibit government failure and realize the general equilibrium of social welfare. Last, the thesis has put forward relevant policy suggestions for the public choice subjects including consumer group, the manufacturer group and the assumption group.