Natural Monopoly and Government Regulation: Basic Theory and Policy Analysis

Author: Yu 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 for 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 between natural and non-natural monopoly businesses in various industries. Empirical research is conducted on the operational businesses and techno-economic characteristics of specific industrial sectors, considering the changes brought about by scientific and technological advancements and corresponding changes in the techno-economic features of industries.
(2) The study examines how to separate natural monopoly businesses from non-natural monopoly businesses to prevent monopolistic enterprises from using cross-subsidies to exclude competition in non-natural monopoly business areas.
(3) The research explores how to eliminate information asymmetry between regulators and regulated entities by introducing competition mechanisms and improving government regulation mechanisms to enhance regulatory efficiency.
(4) The study investigates how to form a price regulation mechanism that aligns with the actual conditions of China's industries to prevent issues such as excessive entry or insufficient entry caused by inappropriate price regulation.