The Performance Of Incentive Regulation In Chinese Telecommunication Industry

Incentive regulation is the milder measure in all the measures of government regulation reforms. Its objects are to improve the efficiency of the regulated enterprises by appropriate incentives measures. The network industries are always under the regulation of the government. It is difficult to establish the proper incentive contract to improve the performance of the network industries. This is also one of the important tasks in the regulation economics and network industry economics. Telecommunication industry is the earliest industry to bring incentive regulation into effect. Thus, the study about the performance of the telecommunication industry could reflect the regulation effect better. It also becomes the reference about how to improve the performance of the network industry.The incentive regulation in Chinese telecommunication industry is the low intensity regulation. This will lead to the low efficiency in telecommunication industry and the loss of social benefit. In order to improve the regulation efficiency and quicken the reform, some measures should be introduced, included the design of the regulation intensity and the reform of system. So, the aims of this paper are: first, the effect of the intensity of incentive regulation policy to industry efficiency is discussed; second, the models and the data are selected to testify the performance of incentive regulation in Chinese telecommunication industry; third, we analyze the problems in Chinese telecommunication industry and discuss the key of the reform of Chinese telecommunication industry.Based on the theories of new institutional economics, this paper makes researches with the methods of theoretical analyses and empirical analyses. In the frame of the principal-agent theory, this paper attempts to discuss the relationship between the intensity of the incentive regulation and the performance of the...