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Network Pricing Models

Rolf Färe, Shawna Grosskopf and Dimitris Margaritis

Chapter 6 in Pricing Non-marketed Goods using Distance Functions, 2019, pp 43-51 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The black box technology is effectively either a very simple or reduced-form model of production. In this chapter, we build on a growing literature introduced by Färe and Grosskopf and a number of their co-authors and colleagues which attempts to look inside the black box and has come to be known in the DEA world as Network DEA (for an overview, see Färe, Grosskopf and Whittaker, 2014). Here, we use this approach to introduce ‘transfer’ pricing, which can be framed as a static multi-plant model or as a model over time…

Keywords: Shadow Prices; Distance Functions; Network Pricing; Duality Theory; Production Models (search for similar items in EconPapers)
Date: 2019
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