On network two stages variable returns to scale Dea models

Vincenzo Patrizii

Omega, 2020, vol. 97, issue C

Abstract: Multiplicative decomposition of stages indices is shown to be consistent with Vrs network technologies. It is also shown why the primal dual correspondence breaks for serial network Vrs models. Different Vrs models can be associated with alternative transfer pricing systems, within the network. Multiplicative decomposition implies marginal cost pricing across stages. While other pricing systems (full cost) correspond to some of the known non-multiplicatively decomposable Vrs models, proposed in the literature. Stages indices, therefore, respond not only to efficiency, but also to the network’s distributive criteria across stages. The distributive contents of stage indices provide the key element for a solution to the problem of measuring scale efficiency in network systems. Multiplicative decomposable Vrs models can be extended to more general network systems, containing both parallel and in series structures. The cost of this generalisation is that efficiency indices are referred to modified stages, that is to stages that include dummy processes. In perspective, these results contribute to show how organisational aspects, such as transfer pricing systems, could be modelled once network technologies are approached from the multiplier (ratio) side.

Keywords: Data envelopment analysis (DEA); Two stages network; Returns to scale; Scale efficiency; Duality (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305048319301793
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:97:y:2020:i:c:s0305048319301793

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.omega.2019.06.010

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().