| Article ID: | iaor1996522 |
| Country: | Netherlands |
| Volume: | 59 |
| Issue: | 2 |
| Start Page Number: | 337 |
| End Page Number: | 339 |
| Publication Date: | Jun 1992 |
| Journal: | European Journal of Operational Research |
| Authors: | Panik Michael J. |
This paper relaxes the assumption that the production activities in a linear profit maximization model are independent. In particular, it is shown that certain types of production externalities arising in one or more activities may adversely affect the efficiency of others. The said externalities may be either of the private or collective variety.