Uncovering regulatorʹs (implicit) social welfare weights under price cap regulation

This paper provides a simple procedure that can be used in empirical works aimed at uncovering the preferences of regulators over consumers. The inverting procedure proposed by Ross (1984) [Ross T.W., 1984, Uncovering Regulator’s Social Welfare Weights, Rand Journal of Economics 15, 152–155.] is adapted to a regulatory situation characterised by price cap regulation.