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A double-frontier approach for measuring market imperfection

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  • Michel Mouchart
  • Marie Vandresse

Abstract

This paper proposes a new methodology for evaluating the market imperfection and the bargaining power of each agent acting on a given market. The new methodology is an extension of DEA to the two frontiers case with respect to a privileged direction. A particular attention is paid to the treatment of bidirectional free disposability. This model is motivated by the analysis of survey data consisting of a set of contracts described in the space of price and attributes. Copyright Springer Science+Business Media, LLC 2010

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  • Michel Mouchart & Marie Vandresse, 2010. "A double-frontier approach for measuring market imperfection," Annals of Operations Research, Springer, vol. 173(1), pages 137-144, January.
  • Handle: RePEc:spr:annopr:v:173:y:2010:i:1:p:137-144:10.1007/s10479-008-0499-7
    DOI: 10.1007/s10479-008-0499-7
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    References listed on IDEAS

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    1. Michel Mouchart & Marie Vandresse, 2007. "Bargaining powers and market segmentation in freight transport," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1295-1313.
    2. GABSZEWICZ, Jean J. & THISSE, Jacques-François, 1999. "Introduction to ``Microeconomic Theories of Imperfect Competition"," LIDAM Reprints CORE 1375, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Marcos Lins & Luiz Novaes & Luiz Legey, 2005. "Real Estate Appraisal: A Double Perspective Data Envelopment Analysis Approach," Annals of Operations Research, Springer, vol. 138(1), pages 79-96, September.
    4. Jean J. Gabszewicz & Jacques-François Thisse (ed.), 1999. "Microeconomic Theories of Imperfect Competition: Old Problems and New Perspectives," Books, Edward Elgar Publishing, number 1078.
    5. Polachek, Solomon W. & Robst, John, 1998. "Employee labor market information: comparing direct world of work measures of workers' knowledge to stochastic frontier estimates," Labour Economics, Elsevier, vol. 5(2), pages 231-242, June.
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    Cited by:

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    2. François-Charles Wolff, 2016. "Bargaining powers of buyers and sellers on the online diamond market: a double perspective non-parametric analysis," Annals of Operations Research, Springer, vol. 244(2), pages 697-718, September.
    3. Wunsch, Guillaume & Mouchart, Michel & Russo, Federica, 2017. "Causal attribution in block-recursive social sytems. A structural modeling perspective," LIDAM Discussion Papers ISBA 2017029, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    4. Ben Lakhdar, Christian & Leleu, Hervé & Vaillant, Nicolas Gérard & Wolff, François-Charles, 2013. "Efficiency of purchasing and selling agents in markets with quality uncertainty: The case of illicit drug transactions," European Journal of Operational Research, Elsevier, vol. 226(3), pages 646-657.

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