Abstract: Abstract: Many studies have shown that problem of social regulation is not is not under-investment, which is worth probing into the reason of. The article embarks from the longitudinal configuration of regulation right, and it adjust model of Fredriksson & Gaston (2000), analyzes and compares the result between centralization and decentralization of regulation right. The study has shown that both of centralization and decentralization of regulation right can achieve optimal equilibrium under certain assumptions. Combined with China's reality, this paper argues that revising objective function of local governments and dredging channels for expressing preferences from public are important factors to improve the effect of regulatory decision-making and implementation. On this basis, suggestions on reconstruction of Chinese social regulation system are given.