Abstract
This contribution extends the literature on super-efficiency by focusing on ranking cost-efficient observations. To the best of our knowledge, the focus has always been on technical super-efficiency and this focus on ranking cost-efficient observations may well open up a new topic. Furthermore, since the convexity axiom has both an impact on technical and cost efficiency, we pay a particular attention to the effect of nonconvexity on both super-efficiency notions. Apart from a numerical example, we use a secondary data set guaranteeing replication to illustrate these efficiency and super-efficiency concepts. Two empirical conclusions emerge. First, the cost super-efficiency notion ranks differently from the technical super-efficiency concept. Second, both cost and technical super-efficiency notions rank differently under convex and nonconvex technologies.
| Original language | English |
|---|---|
| Pages (from-to) | 269-281 |
| Number of pages | 13 |
| Journal | European Journal of Operational Research |
| Volume | 300 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Jul 1 2022 |
Keywords
- Cost efficiency
- Data envelopment analysis
- Free disposal hull
- Super-efficiency
- Technical efficiency
ASJC Scopus subject areas
- Computer Science(all)
- Modelling and Simulation
- Management Science and Operations Research
- Information Systems and Management