Abstract (EN):
This paper enhances cost efficiency measurement methods to account for different scenarios relating to input price
information. These consist of situations where prices are known exactly at each decision making unit (DMU) and
situations with incomplete price information. The main contribution of this paper consists of the development of a
method for the estimation of upper and lower bounds for the cost efficiency (CE) measure in situations of price
uncertainty, where only the maximal and minimal bounds of input prices can be estimated for each DMU. The bounds
of the CE measure are obtained from assessments in the light of the most favourable price scenario (optimistic perspective)
and the least favourable price scenario (pessimistic perspective). The assessments under price uncertainty are
based on extensions to the Data Envelopment Analysis (DEA) model that incorporate weight restrictions of the form of
input cone assurance regions. The applicability of the models developed is illustrated in the context of the analysis of
bank branch performance. The results obtained in the case study showed that the DEA models can provide robust
estimates of cost efficiency even in situations of price uncertainty.
Language:
English
Type (Professor's evaluation):
Scientific
No. of pages:
15