Researches On The Problem Of The Administrative Monopoly In The Regulation Of The Natural Monopoly Industries

Since the beginning of reform and opening up , with the going of the process ,local governments and departments in charge of industry have had more and more those own independent interests and more corresponding power, and local government monopoly and industry monopoly have increased a lot, which comes to"administrative monopoly" . In recent years, the losses of administrative monopoly have been recognized by the community more and more, and "administrative monopoly" has become a hot issue of concern. Administrative monopoly can be divided into local administrative monopoly and industrial administrative monopoly, the latter of which can be divided into administrative monopoly based on the natural monopoly and administrative monopoly based on other reasons, and this paper is primarily to study on some problems about the administrative monopoly based on the natural monopoly.In this paper, on the basis of the clear concept of natural monopoly and administrative monopoly, we primarily explored some the problems as follows: Since entry regulation is needed in natural monopoly industries, can we characterize entry regulation as " administrative monopoly" ? If that could be classified as"administrative monopoly" , according to what? If not, what? Normal regulation in natural monopoly industries and administrative monopoly struggle together, how to separate them? What dose Administrative monopoly impact on the allocation of resources? Further, the paper also attempted to explore the formation of industrial administrative monopoly and the influencing factors, and at last gave some recommendations about the anti-monopoly policy.Chapter 1, some theories about natural monopoly were firstly Recalled which told that the most essential characteristic of natural monopoly is subadditivity, and allowing the existence of monopoly enterprise we could achieve cost-effective, so entry regulation is necessary; At the same time, in order to prevent the monopoly pricing, it is necessary to give an effective price regulation. Then we defined administrative monopoly as the use of public power for the government to restrict or exclude market competition, and introduced a standards and steps for the distinction between monopoly and natural monopoly.Chapter 2, we explored the issues of entry regulation and the define of administrative monopoly in detail, which told that entry regulation should be included in the scope of administrative monopoly when it is unnecessary in the competitive areas because the market is valid; When it comes to monopoly areas, we should have a comprehensive cost-benefit analysis before we ultimately determine it is administrative monopoly or not.Chapter 3, after the introduction of price regulation, we pointed out that the information asymmetries and the regulator trapped would fail the price regulation, and in China, the price regulation failure does not increase the excess profits, but the cost unnecessary. Under this premise, administrative monopoly has brought the social welfare losses, loss of productivity, costs of rent-seeking and other efficiency losses, while it also leads to welfare transfers, unjust distribution of income.Chapter 4, we established a supply and demand model about the formation of administrative monopoly, and introduced various factors impacting the supply and demand—the monopoly profits,information asymmetry,the internal efficiency and the government's fair degree, the corporate structure of property rights, consumer strength and the strength of the competition and so on, which explained the distribution of monopoly interests between the government and enterprises as well as the general decision-making process of administrative monopoly.Chapter 5, we gave some proposals for the solution of the problems caused by administrative monopoly which can be divided into four aspects, these four aspects are: market structure policy, the government institutional reform, reform of the management system of state-owned enterprises, as well as "anti-monopoly" law promulgated and effective implementation.