According to the Tullock model in the theory of rent-seeking, the social cost of industry administration monopoly includes deadweight social welfare loss and monopoly profits.

In much of Europe, rules governing worker firing helped limit job loss, while strong social-welfare programs ensured that even the jobless retained their health care and received a basic income.

But Chinese security market is incomplete under short-sale constraint, which causes the ineffectiveness of risk share and the loss of social welfare.