The paradox of government regulation in naturally monopolized industries-general service obligation,maintainability and market efficiency

From the angle of economic efficiency,government regulation gets involved in naturally monopolized industries for two reasons: first,for those industries providing services concerning the basic life and rights of the public,government regulation can make them fulfill the general service obligation by cross-subsidization;second,as these industries are likely to choose the easy way,government regulation is necessary to maintain their development and guarantee that the public enjoy the general service.Nevertheless,in policy making and regulation practice,government regulation often fails to maximize social security.This proves that government regulation is not the only approach to realize the equilibrium between justice and efficiency in naturally monopolized industries.