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Benchmark Selection: An Axiomatic Approach

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  • Jens Leth Hougaard

    (Institute of Economics, University of Copenhagen)

  • Mich Tvede

    (Institute of Economics, University of Copenhagen)

Abstract

Within a production theoretic framework, this paper considers an axiomatic approach to benchmark selection. It is shown that two simple and weak axioms: efficiency and comprehensive monotonicity characterize a natural family of benchmarks which typically becomes unique. Further axioms are added in order to obtain a unique selection.

Suggested Citation

  • Jens Leth Hougaard & Mich Tvede, 2001. "Benchmark Selection: An Axiomatic Approach," Discussion Papers 01-06, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:0106
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    References listed on IDEAS

    as
    1. Christensen, Flemming & Hougaard, Jens Leth & Keiding, Hans, 1999. "An axiomatic characterization of efficiency indices," Economics Letters, Elsevier, vol. 63(1), pages 33-37, April.
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    6. Post, Thierry & Spronk, Jaap, 1999. "Performance benchmarking using interactive data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 115(3), pages 472-487, June.
    7. Jens Hougaard & Hans Keiding, 1998. "On the Functional Form of an Efficiency Index," Journal of Productivity Analysis, Springer, vol. 9(2), pages 103-111, March.
    8. Bergstrom, Theodore C., 1975. "Maximal elements of acyclic relations on compact sets," Journal of Economic Theory, Elsevier, vol. 10(3), pages 403-404, June.
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    More about this item

    Keywords

    Benchmarking; Production Economics; Selection;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D2 - Microeconomics - - Production and Organizations
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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