Congestion in production correspondences

Walter Briec, Kristiaan Kerstens and Ignace Van de Woestyne
Additional contact information
Walter Briec: University of Perpignan, LAMPS
Ignace Van de Woestyne: Research unit MEES

Journal of Economics, 2016, vol. 119, issue 1, No 4, 65-90

Abstract: Abstract This contribution aims to detect and measure more severe forms of congestion than the ones that could hitherto be evaluated in axiomatic production theory. To this end, we define a new S-disposal axiom, a kind of limited strong disposability. This S-disposal assumption leads to a duality result between a general input directional distance function and the cost function that is weaker than the ones established in the literature. Finally, we indicate how finite data sets can or cannot be rationalized by a minimal technology compatible with S-disposal, thereby generalizing the nonparametric weak axiom of cost minimization test.

Keywords: Distance function; Cost function; Duality; Congestion; WACM (search for similar items in EconPapers)
JEL-codes: C61 D24 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://link.springer.com/10.1007/s00712-016-0484-6 Abstract (text/html)

Related works:
Working Paper: Congestion in Production Correspondances (2016)
Working Paper: Congestion in production correspondences (2016)
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:kap:jeczfn:v:119:y:2016:i:1:d:10.1007_s00712-016-0484-6

DOI: 10.1007/s00712-016-0484-6

Access Statistics for this article

Journal of Economics is currently edited by Giacomo Corneo

More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().