Pricing decision-making units
R F&aauml;re,
Shawna Grosskopf and
D Margaritis
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R F&aauml;re: 1] Department of Agricultural and Resource Economics, Oregon State University, Corvallis, OR, USA[2] Department of Economics, Oregon State University, Corvallis, OR, USA
D Margaritis: University of Auckland Business School, Auckland, New Zealand
Journal of the Operational Research Society, 2013, vol. 64, issue 4, 619-621
Abstract:
In this note we extend the standard DEA paradigm to address the question of how one can price DMUs (decision-making units). To do this we use an adjoint transformation to the technology generated by these DMUs which links to traditional linear programming theory of the firm and is similar to pricing portfolios in financial markets. We also provide a numerical example illustrating the practicality of the proposed method.
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:64:y:2013:i:4:p:619-621
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