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| Author: | Kallio, M. Kallio, M. |
| Title: | Nonparametric methods for evaluating economic efficiency and imperfect competition |
| Journal: | Journal of productivity analysis
2002 : SEP, VOL. 18: 2, p. 171-189 |
| Index terms: | Production Efficiency Competition Data envelopment analysis Paper and pulp industry Nordic countries Finland |
| Language: | eng |
| Abstract: | This article unifies and extends ideas from non-parametric production analysis and DEA for testing organizational efficiency. It is shown how the admissible price set can be restricted to account for prior information on prices. These restrictions may relate prices to input and output quantities in order to test non-competitive behaviour of the evaluated decision making unit. This paper considers the question when does local optimality of the result guarantee global optimality. It is also shown how the decision maker's preferences, for example ranking information, can be adopted into DEA models in a simple manner. Finally, the approach with price restrictions is illustrated with an application to test non-competitive behavior of the pulp and paper industries in Finland. |
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