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A generalisation of the Farrell cost efficiency measure applicable to non-fully competitive settings

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Author Info
Camanho, A.S.
Dyson, R.G.
Abstract

This paper enhances cost efficiency measurement methods to account for situations where the input prices can depend on negotiation or tend to qualitatively differentiate the resources available at each decision making unit. In these circumstances, there are some shortcomings in the cost efficiency measure described in the data envelopment analysis (DEA) literature. This paper proposes new models and measures for cost efficiency evaluation that overcome the limitations of the existing DEA models. The applicability of the measures developed is illustrated in the context of the analysis of bank branch performance.

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File URL: http://www.sciencedirect.com/science/article/B6VC4-4JBGKD5-1/2/ff90b7546fbdade763d5a66bf5659fba
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Publisher Info
Article provided by Elsevier in its journal Omega.

Volume (Year): 36 (2008)
Issue (Month): 1 (February)
Pages: 147-162
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Handle: RePEc:eee:jomega:v:36:y:2008:i:1:p:147-162

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Keywords: Data envelopment analysis Cost efficiency Adjustable prices;

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Evelyne Poincelot & Dominique Poincelot, 2007. "Les sociétés cotées en France préparent-elles le marché à l’augmentation de leur capital par les rachats de leurs propres actions?Do french quoted firms repurchase stocks in order to prepare t," Working Papers FARGO 1071105, Université de Bourgogne - Latec/Fargo (Research center in Finance,organizational ARchitecture and GOvernance). [Downloadable!]
  2. Aude Hubrecht-Deville & Hervé Leleu, 2007. "Performance measures of retail banking networks: a decision support tool," Working Papers FARGO 1071203, Université de Bourgogne - Latec/Fargo (Research center in Finance,organizational ARchitecture and GOvernance). [Downloadable!]
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