 Price-cap regulation was developed in the 1980s by British Treasury economist Stephen Littlechild and was gradually incorporated globally into monopoly regulations.Price-cap regulation adjusts firm prices according to a price cap index which reflects the inflation rate in the economy generally, efficiencies a specific firm is able to utilize relative to the average firm in the economy, and the inflation in a firm's output prices relative to the average firm in the economy.Revenue-cap regulation is a similar means of regulating monopolies, except instead of prices being the regulated variable, regulators set revenue limits.