Article ID: | iaor19992097 |
Country: | United Kingdom |
Volume: | 10 |
Issue: | 4 |
Start Page Number: | 3 |
End Page Number: | 8 |
Publication Date: | Oct 1997 |
Journal: | OR Insight |
Authors: | Thanassoulis Emmanuel |
Keywords: | measurement |
This article describes an application of data envelopment analysis to a set of pubs highlighting the difference between market efficiency and profitability. Market efficiency captures the ability of a unit to gain market share given its operating environment. Profitability reflects the combined effects of the market efficiency and of the ability of the unit to control its operating costs. Isolating the market efficiency component of profitability gives better input for long term planning purposes and makes for more appropriate benchmark identifications.