Applied cost allocation: the DEA–Aumann–Shapley approach

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

Applied cost allocation : the DEA–Aumann–Shapley approach. / Bogetoft, Peter; Hougaard, Jens Leth; Smilgins, Aleksandrs.

In: European Journal of Operational Research, Vol. 254, No. 2, 2016, p. 667–678.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Bogetoft, P, Hougaard, JL & Smilgins, A 2016, 'Applied cost allocation: the DEA–Aumann–Shapley approach', European Journal of Operational Research, vol. 254, no. 2, pp. 667–678. https://doi.org/10.1016/j.ejor.2016.04.023

APA

Bogetoft, P., Hougaard, J. L., & Smilgins, A. (2016). Applied cost allocation: the DEA–Aumann–Shapley approach. European Journal of Operational Research, 254(2), 667–678. https://doi.org/10.1016/j.ejor.2016.04.023

Vancouver

Bogetoft P, Hougaard JL, Smilgins A. Applied cost allocation: the DEA–Aumann–Shapley approach. European Journal of Operational Research. 2016;254(2):667–678. https://doi.org/10.1016/j.ejor.2016.04.023

Author

Bogetoft, Peter ; Hougaard, Jens Leth ; Smilgins, Aleksandrs. / Applied cost allocation : the DEA–Aumann–Shapley approach. In: European Journal of Operational Research. 2016 ; Vol. 254, No. 2. pp. 667–678.

Bibtex

@article{b92989d545304850bd6331e76b5fa692,
title = "Applied cost allocation: the DEA–Aumann–Shapley approach",
abstract = "This paper deals with empirical computation of Aumann–Shapley cost shares for joint production. We show that if one uses a mathematical programing approach with its non-parametric estimation of the cost function there may be observations in the data set for which we have multiple Aumann–Shapley prices. We suggest to overcome such problems by using lexicographic goal programing techniques. Moreover, cost allocation based on the cost function is unable to account for differences between efficient and actual cost. We suggest to employ the notion of rational inefficiency in order to supply a set of assumptions concerning firm behavior. These assumptions enable us to connect inefficient with efficient production and thereby provide consistent ways of allocating the costs arising from inefficiency.",
author = "Peter Bogetoft and Hougaard, {Jens Leth} and Aleksandrs Smilgins",
year = "2016",
doi = "10.1016/j.ejor.2016.04.023",
language = "English",
volume = "254",
pages = "667–678",
journal = "European Journal of Operational Research",
issn = "0377-2217",
publisher = "Elsevier",
number = "2",

}

RIS

TY - JOUR

T1 - Applied cost allocation

T2 - the DEA–Aumann–Shapley approach

AU - Bogetoft, Peter

AU - Hougaard, Jens Leth

AU - Smilgins, Aleksandrs

PY - 2016

Y1 - 2016

N2 - This paper deals with empirical computation of Aumann–Shapley cost shares for joint production. We show that if one uses a mathematical programing approach with its non-parametric estimation of the cost function there may be observations in the data set for which we have multiple Aumann–Shapley prices. We suggest to overcome such problems by using lexicographic goal programing techniques. Moreover, cost allocation based on the cost function is unable to account for differences between efficient and actual cost. We suggest to employ the notion of rational inefficiency in order to supply a set of assumptions concerning firm behavior. These assumptions enable us to connect inefficient with efficient production and thereby provide consistent ways of allocating the costs arising from inefficiency.

AB - This paper deals with empirical computation of Aumann–Shapley cost shares for joint production. We show that if one uses a mathematical programing approach with its non-parametric estimation of the cost function there may be observations in the data set for which we have multiple Aumann–Shapley prices. We suggest to overcome such problems by using lexicographic goal programing techniques. Moreover, cost allocation based on the cost function is unable to account for differences between efficient and actual cost. We suggest to employ the notion of rational inefficiency in order to supply a set of assumptions concerning firm behavior. These assumptions enable us to connect inefficient with efficient production and thereby provide consistent ways of allocating the costs arising from inefficiency.

U2 - 10.1016/j.ejor.2016.04.023

DO - 10.1016/j.ejor.2016.04.023

M3 - Journal article

VL - 254

SP - 667

EP - 678

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

IS - 2

ER -

ID: 161628670