Price Control by Government Supervision over Commercialized Municipal Public Utilities

The privatization of municipal public utilities is based on the theory that public interests could be maximized through fully inspiring the motivation to maximize individual interests.But this logic is not very reliable as in the process of market supply,the conflict between the public characteristics of public utilities and the market-failure price characteristics caused by natural industry monopoly precludes the market from meeting the demand of public interests maximization.However,price control is a crucial measure for government to regulate municipal public utilities,which protects the consumer interests and encourages investment to achieve supply-demand balance as well.So it is essential for the government to take price control measures.