Economic Analysis on Administrative Monopoly

This paper tries to classify monopolies according to different entry barriers, and points out that the most important two groups of classifications are the monopolies required by market offi-ciency and the administrative monopolies caused by government intervention. The former group monopolies, because the market tends to be a contestable market for the entry menace of potential en-terers, have to give up most of their supernormal profits, while the administrative monopolies dis-guise the original competitive area as the one of natural monopoly. The regional monopoly from local government intervention is the direct reason of repeated construction and excessive competition. Changing government function and standardizing government behavior are the essential measure to break the administrative monopoly.