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Rational Inefficiencies

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  • Bogetoft, Peter
  • Hougaard, Jens Leth

Abstract

In this paper, we suggest that inefficiency may be an indirect, on-the-job compensation to agents in an organization. We show how to use actual production data to reveal the trade-offs between different inefficiencies (slacks). Moreover, we discuss how to use this to improve productivity analysis as well as decision making and incentive provisions in organizations.

Suggested Citation

  • Bogetoft, Peter & Hougaard, Jens Leth, 2001. "Rational Inefficiencies," Unit of Economics Working Papers 24191, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
    • Handle: RePEc:ags:rvaewp:24191
    DOI: 10.22004/ag.econ.24191
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    References listed on IDEAS

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