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Data Envelopment Analysis

In: Frontiers in Major League Baseball

Author

Listed:
  • John Ruggiero

    (University of Dayton)

Abstract

Analysis of performance has economic production theory as its foundation. Firms employ inputs to produce output typically with an incentive to maximize profits. Firms that are technically inefficient could increase outputs and revenue with the same inputs or could decrease inputs and cost with the same outputs. Farrell (1957) provided a decomposition of inefficiency into technical and allocative parts. From an input-oriented perspective, firms that are not operating on the isoquant associated with observed production are technically inefficient. Farrell provided a comprehensive measure of technical efficiency as the equiproportional reduction of all inputs holding output at current levels. Allocative efficiency is then measured relative to the cost minimizing mix of inputs given observed input prices.

Suggested Citation

  • John Ruggiero, 2011. "Data Envelopment Analysis," Sports Economics, Management, and Policy, in: Frontiers in Major League Baseball, chapter 0, pages 7-19, Springer.
  • Handle: RePEc:spr:semchp:978-1-4419-0831-5_2
    DOI: 10.1007/978-1-4419-0831-5_2
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    Cited by:

    1. Rita, Rui & Marques, Vitor & Lúcia Costa, Ana & Matos Chaves, Inês & Gomes, Joana & Paulino, Paulo, 2018. "Efficiency performance and cost structure of Portuguese energy “utilities” – Non-parametric and parametric analysis," Energy, Elsevier, vol. 155(C), pages 35-45.
    2. Samet Güner & Erman Coşkun, 2016. "Determining the best performing benchmarks for transit routes with a multi-objective model: the implementation and a critique of the two-model approach," Public Transport, Springer, vol. 8(2), pages 205-224, September.
    3. Villa, G. & Lozano, S., 2016. "Assessing the scoring efficiency of a football match," European Journal of Operational Research, Elsevier, vol. 255(2), pages 559-569.

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