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Proportional sharing and DEA in allocating the fixed cost

โœ Scribed by Si, Xiaoling; Liang, Liang; Jia, Guozhu; Yang, Li; Wu, Huaqing; Li, Yongjun


Book ID
122091870
Publisher
Elsevier Science
Year
2013
Tongue
English
Weight
253 KB
Volume
219
Category
Article
ISSN
0096-3003

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This paper focuses on the benefits of fixed cost allocation in product mix decisions . We show that in a constrained production environment where at least one factor of production is fixed and in short supply, oligopoly firms can earn higher profits by allocating the costs of these fixed factors . T