Article ID: | iaor20042889 |
Country: | United Kingdom |
Volume: | 10 |
Issue: | 4 |
Start Page Number: | 393 |
End Page Number: | 402 |
Publication Date: | Jul 2003 |
Journal: | International Transactions in Operational Research |
Authors: | Morita Hiroshi |
Keywords: | production |
Economies of scope exist when joint production is more efficient than separate production for several kinds of activities. The main purposes are to develop a method for identifying the economies of scope by using data envelopment analysis, which involves the use of non-parametric production frontiers and does not require cost information on inputs and outputs. The economies of scope are measured by comparing efficient frontiers, where the most robust multipliers are defined for evaluation of the dominance relation of efficient frontiers.