Study Of Existence Of Natural Monopoly In The Network Economy And Market Regulation

With the rapid development of global network economy, network industry plays a more and more important role in the social economy. Since the1990s, the rapid development of the information technology revolution has brought people into the era of network economy. As a new economic operation pattern, network economy has different characteristics and rules from the traditional economy. The conventional theory studies natural monopoly in the framework of production function, and in the mere sight of the supply factors, therefore, the essence of natural monopolies only be attributed to economies of scale and economies of scope and cost subadditive, lacking of the demand side which is just important factor in the analysis. The traditional theory of regulation is given priority to static analysis, and regards the static efficiency as reference for regulating menu. So it ignores or rejects dynamic efficiency which plays a more important role for the economic growth and social welfare.In this paper, we study the existence of natural monopoly, it is conducive for the government to build a framework of network economy, and good for the definition of monopoly behavior in the network economy. This paper analyzes the static efficiency and dynamic efficiency, in order to build market regulatory which has a stronger power of universality and explanatory.In the methods of analyzes, this paper combines the methods of theory and practice, static and dynamic analysis, empirical analysis and normative analysis. In the content,firstly,this article attempts the perspective of demand to explore the existence of natural monopoly in the network economy. The paper analyzes the preferences, dynamic equilibrium in the network economy market, switching cost, the performance and factors of structure in the market concentrated by network economy, in order to extend the natural monopoly. On this basis, we conclude the mechanism of natural monopoly in the network economy:natural monopoly in network economy is closely linked with the demand-side economies of scale.The demand-side economies of scale through the positive feedback to reach the market share, then the market is easy to develop into a highly centralized, imperfect market;secondly,this paper selects the e-commerce industry as the object of empirical test, through the calculation of CRn, HHI in the B2B,B2C and C2C,and we conclude that e-commerce industry belongs to a oligopoly market;thirdly,the theoretical analysis and empirical research are implied in the existence of natural monopoly. This paper introduces dynamic efficiency to evaluate productivity, allocation efficiency and dynamic efficiency. Because the production efficiency and dynamic efficiency is low in the network economic, so this paper puts forward the concrete content of the market regulation from the aspects of network interconnection, relaxing the protection of intellectual property rights, asymmetric regulation and promoting the development of competitive monopoly. The regulation of natural monopoly can help to explore the path of network economy with characteristics.