Natural Monopoly Of Government Regulation Theoretical Research

Economics of natural monopoly is a traditional concept. Natural monopoly theory has experienced natural conditions, economies of scale, economies of scope and cost increase of four inferior stage of development, people's understanding of the economic characteristics of natural monopoly level rising, deepening. The theory of Natural Monopoly Industries also will have great development.Regulation of Natural Monopolies Regulation of reform has been the economics of research. 60 generations since the last century, great progress has been government regulation theory. Government regulation of natural monopoly theory has gone through the traditional regulatory theory and modern theory of regulation two stages. In the traditional theory of regulation stage had a public interest theory of regulatory capture theory and the regulation of economic theory; in the modern theory of regulation stage classic theory of "contestable markets" theory, "natural monopoly flexible regulation" theory, the failure of regulation theory and incentive theory of regulation. Through in-depth analysis of these theories, and compared with each other, come to the characteristics of various theories, defects, suitable conditions for the development of economic theory in China and for China's situation under the guidance of economic significance. China's power industries through the empirical analysis show that these regulations run theory in China.In this paper, regulation of natural monopolies and the concept of entry points, extended the theories of government regulation of natural monopolies, and then compare the various theories, comments. Regulation of the traditional theory and modern theory of regulation is different and their guidance in the different effects the real economy. Then an overview of the electricity industry functions and technical characteristics, the motives for reform, starting from the actual data of the four links from the electric power industry, the empirical analysis to study the reform of China's electric power industry, the effect of government regulation. Finally, the current regulation system in China's power industry, the main problems, combined with the experience of western countries on China's power industry reforms targeted government regulation strategies.