Industrial Organization and Public Policy:Regulation or Deregulation

Regulation,as governmental intervention on the market,is both a legal and an economic concept.The economic regulation has evolved from three stages:normative analysis as a positive theory,the capture theory and economic theory of regulation.Regulation had been prevailing in the early times of last century,but with the development of contestable market theory,the progress of technology and globalization,policymakers are rethinking of some traditionally regulated industries.The author studied this phenomenon and revealed the serious problems underlying the regulation system of China.