Abstract:

Since French economist Jean Tirole won the economics Nobel Prize, his new industrial organization theory and new regulation economics has drawn wide attention from researchers. By using the new regulation theory of Tirole, this thesis analyzes the regulation problem of pollution control enterprise. It can be found that under the condition of complete information, a fixed price contract can encourage the enterprise to play optimal effort level so as to realize the maximization of social welfare; and in the case of asymmetric information, a fixed price contract containing yardstick competition can be used in the regulation and solve the welfare loss due to asymmetric information to a certain extent. This finding can be quite helpful for China’s relevant government departments to regulate pollution control enterprise.