Data Envelopment Analysis (DEA) based cost norms are widely used to regulate natural monopolies like water, electricity, and gas networks. In the typical application, demand is considered fixed and non-controllable (non-discretionary), and the challenge is to incentivize the monopoly to provide...

In many markets there is some form of regulation; and when new policy measures are introduced into a particular sector, the question of how to structure an adequate regulatory process arises. This paper contributes to the literature by describing the approach taken in the nursing home sector in...