In regulation of network services such as the distribution of electricity, gas and water prices have traditionally been based on own costs of companies. Recently a few regulatory bodies in Europe started to use yardstick competition, a scheme that links prices to the performance of other...

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...