Do market share and efficiency matter for each other An application of the zero-sum gains data envelopment analysis

J. L. Hu, Chin-Yi Fang

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Current studies that use traditional data envelopment analysis (DEA) neglect the 100% market share restriction. This study adopts zero-sum gains data envelopment analysis to measure the efficiency scores of securities firms (SFs) and indicates that the traditional DEA model underestimates the efficiency scores of inefficient SFs. This research analyses 266 integrated securities firms in Taiwan from 2001 to 2005 and employs three inputs (fixed assets, financial capital, and general expenses) and a single output (market share). The foreign-affiliated ownership of SFs positively affects the efficiency scores. The two-stage least squares procedure confirms that the market share and efficiency score simultaneously reinforce each other.

Original languageEnglish
Pages (from-to)647-657
Number of pages11
JournalJournal of the Operational Research Society
Volume61
Issue number4
DOIs
Publication statusPublished - 2010 Apr 1

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Data envelopment analysis
Market efficiency
Market share

Keywords

  • Zero-sum gains data envelopment analysis (ZSG-DEA); panel data; two-stage least squares procedure (2SLS)

ASJC Scopus subject areas

  • Management Information Systems
  • Strategy and Management
  • Management Science and Operations Research
  • Marketing

Cite this

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