Primary Approach to Water （Natural Monopoly） Industry Remodeling

Natural monopoly, because of its spontaneous or natural characteristics, most have some mysterious causes of reasonableness. Thus, the regulations to its efficiency loss would have a different way compared to other monopolies. That the characteristics of natural monopoly, in the case of water industry, are that the infrastructure investments are very large, most of which are used to build the transportation system? The webs for transporting their products to their customers, and the products are identity goods or services. By examining the characteristics of natural monopoly, this paper proposed a way to break up and remodel the industry of ““““““““natural monopoly‘. The main clue of remodeling is that the govemments, who represent the public and who ha ve the power to control over public resources, should build and maintain a public web platform for the goods‘ transportation uses, and break up the barrier of the entry so as to produce a market-oriented competitive structure, The running model and the condition of remodeling are put forward and the cost-revenue analysis of the operation is briefly under consideration.

Primary Approach to Water(Natural Monopoly) Industry Remodeling