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Author(s): A. S. Camanho
R. G. Dyson
Title: Cost efficiency measurement with price uncertainty : a DEA application to bank branch assessments
Issue Date: 2005
Abstract: This paper enhances cost efficiency measurement methods to account for different scenarios relating to input priceinformation. These consist of situations where prices are known exactly at each decision making unit (DMU) andsituations with incomplete price information. The main contribution of this paper consists of the development of amethod for the estimation of upper and lower bounds for the cost efficiency (CE) measure in situations of priceuncertainty, where only the maximal and minimal bounds of input prices can be estimated for each DMU. The boundsof the CE measure are obtained from assessments in the light of the most favourable price scenario (optimistic perspective)and the least favourable price scenario (pessimistic perspective). The assessments under price uncertainty arebased on extensions to the Data Envelopment Analysis (DEA) model that incorporate weight restrictions of the form ofinput cone assurance regions. The applicability of the models developed is illustrated in the context of the analysis ofbank branch performance. The results obtained in the case study showed that the DEA models can provide robustestimates of cost efficiency even in situations of price uncertainty.
Subject: Investigação operacional, Outras ciências da engenharia e tecnologias
Operations research, Other engineering and technologies
Scientific areas: Ciências da engenharia e tecnologias::Outras ciências da engenharia e tecnologias
Engineering and technology::Other engineering and technologies
Document Type: Artigo em Revista Científica Internacional
Rights: restrictedAccess
Appears in Collections:FEUP - Artigo em Revista Científica Internacional

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