Natural Monopoly and Government Regulation: Basic Theory and Policy Analysis

Author: Wang Liangchun
Publisher:
Publish Date: 2003-12-01
Features: This book takes the telecommunications and power sectors as case studies, focusing on the characteristics and dynamic changes of natural monopoly, the features of natural monopoly industries, and the basic theories and policies of regulating them. It also explores how to effectively introduce competition mechanisms into China's natural monopoly industries, as well as how to regulate competitive and natural monopoly businesses after competition is introduced. The key research questions include:
(1) The definition of natural monopoly businesses. This involves studying how to distinguish natural monopoly businesses from non-natural monopoly businesses in various industries. Empirical research is conducted on the operational businesses and techno-economic characteristics of specific industrial sectors, considering changes driven by scientific and technological advancements and corresponding shifts in techno-economic features.
(2) The separation of natural monopoly businesses and non-natural monopoly businesses to prevent monopolistic enterprises from using cross-subsidies to exclude competition in non-natural monopoly business areas.
(3) The study of how to eliminate information asymmetry between regulators and regulated entities through introducing competition mechanisms and improving government regulation to enhance regulatory efficiency.
(4) The exploration of how to form a price regulation mechanism that aligns with China's industrial realities to prevent issues such as excessive entry or insufficient entry caused by inappropriate price regulation.