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A double-frontier approach for measuring market imperfection
Authors:Michel Mouchart  Marie Vandresse
Institution:(1) University of Nice Sophia Antipolis, Institut Universitaire de France and OFCE, 250 avenue Albert Einstein, 06560 Valbonne, France;(2) CNRS-GREDEG and OFCE, Valbonne, France
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.
Keywords:
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