Article ID: | iaor20125388 |
Volume: | 41 |
Issue: | 1 |
Start Page Number: | 55 |
End Page Number: | 60 |
Publication Date: | Jan 2013 |
Journal: | Omega |
Authors: | Liang Liang, Li Yongjun, Yang Min, Chen Ya, Dai Qianzhi |
Keywords: | statistics: data envelopment analysis |
This paper uses the Data Envelopment Analysis (DEA) technique to solve the problem of allocating a fixed cost across a set of comparable decision making units (DMUs) in a fair way. It first investigates the effect of the fixed cost on each DMU and on the collection of DMUs. Next we prove that there exist some cost allocations which can make each DMU and the collection of DMUs efficient. We show that such a cost allocation is unique and equivalent to the