A Study of Effective Regulation Model in Privatizing the Public Enterprises

The privatization deems to be an important policy towards to the solutions of public ownership faults. However, the privatizing a monopoly industry could not damage the consumers’ interests inevitably. Thus, it is necessary to introduce the government regulation towards to the privatized monopoly industry. The premises of the privatization combined with regulation model are: controlling the privatization of a monopoly industry shall increase the efficiency, improved service quality and lower the costs to consumers. The method for this research is to review existing literature and study the regulations and the regulation in the developed nations comparing their variations and to find out the most efficient regulation models to design or amend for other nations. The objective of this study is to study the privatization experiences from the existing nations and convert to those nations may need for reference. At the end, this paper also found that the effective regulation model may not only bring down the costs of the public services, but also improved the efficiency to a near market competition standard