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Production Possibility Set and Efficiency

Efficiency in Production Possibility Set and General Model

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Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 218))

Abstract

Many concepts used in DEA are adopted from production economics. One of those concepts is production function f: ℜm → ℜ(y = f(x)), where vector x represents inputs and y is one-dimensional output. In this case, it is assumed that a DM can control inputs x. There are possibly other inputs, which are non-controllable. They are taken into account in the structure of function f. Moreover, the term cost function is used to refer to the case, in which there are many outputs and one input, and the DM is assumed to control the outputs, i.e., c: ℜs → ℜ (x = c(y)).

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Joro, T., Korhonen, P.J. (2015). Production Possibility Set and Efficiency. In: Extension of Data Envelopment Analysis with Preference Information. International Series in Operations Research & Management Science, vol 218. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-7528-7_3

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