Model DEA do pomiaru efektywności kosztowej z niepewnością cenową
[A DEA model for cost efficiency measurement with price uncertainty]

Zohreh Moghaddas (Department of Applied Mathematics and Statistics, 
Qazvin Islamic Azad University, Qazvin, Iran)


The data envelopment analysis (DEA) technique is commonly utilized for efficiency 
assessment in a variety of fields for both theoretical and applicational purposes. 
In classic cost-efficiency measurement models, the input and output data and input 
prices should be known for each decision-making unit (DMU). However, in real-life 
markets, the input prices are not precisely defined for DMUs. In this paper, we shed 
light on the fact that fixed prices assumption cannot reflect the reality of 
situations, because the market will force lower prices if greater amounts of a 
product are purchased. It can be said that discounts are automatically considered in 
these circumstances. To this end, an innovative idea is considered to modify the 
classic cost efficiency DEA model in order to investigate the situations of 
real-life markets. Then, by an empirical example, a comparison between the proposed 
approach and the classic cost efficiency model is provided.