The Research On Cost Information Disclosure Of Natural Monopoly Enterprise

In the operation of the market economy, water, electricity, gas is natural monopoly with resource exclusively, cost subadditivity and economy of scale characteristics. Natural monopolies could not compete effectively, leading to market failures. Price mechanism can’t achieve the balance between supply and demand. Therefore, natural monopoly enterprises need price regulation to achieve the goal of maximization of social welfare. Costs regulation is the core of price regulation. It’s effectiveness can’t play without true, complete and reasonable cost information. This article conform to the general trend of the reform of monopoly industries, based on the asymmetric information theory, regulation theory and game theory to study the natural monopolies cost information disclosure issue. Discussion on the necessity of natural monopoly enterprise cost information disclosure from regulation of scientific pricing, the public’s right to know and control the controlled the adverse selection and moral hazard problems perspective. Starting from solving the cost information is "commercial secrets" perspective, discusses the feasibility of cost information disclosure. Based on the current natural monopoly enterprise cost disclosure situation, point out the existing problems and the reasons for the in-depth analysis. Finally, based on absorbing water supply industry cost disclosure practices, this paper construct the cost information disclosure theory system of natural monopoly enterprises. To improve natural monopolies cost disclosure, this paper put forward some policy recommendations.The innovation of this paper:1. This paper explores the necessity of natural monopoly enterprise cost information disclosure and feasibility.2. This paper constructs three levels of cost information disclosure system, in order to make the public understand and judge the rationality of the cost information.3. The Power Grid as an example, this paper design the cost report and salary report that disclosed to the public.