Introduction to Regulatory Economics: Basic Theories and Their Application in Government Regulation Practice

Author: Wang Junhao
Publisher:
Publish Date: 2001-12-01
Features: Government Regulation Economics is an emerging interdisciplinary field. This book analyzes the demand and supply, costs and benefits of this special public product—government regulation. It comprehensively elaborates on the fundamental principles of economic regulation and social regulation, the process of government regulation, theories of government regulation under information asymmetry, and the theory of regulatory capture. It delves into theories such as natural monopoly theory, investment regulation theory, investment management theory, theories of price level and price structure regulation, entry regulation theory, and the theory of competition in natural monopoly industries. Taking the three natural monopoly industries of telecommunications, electricity, and water supply as examples, it provides a detailed discussion of the practical application of these regulatory theories. Building on the theories of externalities and information asymmetry, the book also explores government regulation of the environment and product quality. Finally, it forecasts the two major trends of relaxing economic regulation and strengthening social regulation in China and proposes corresponding policy approaches.