Performance and competition analysis with fixed-sum measures : A case on OPEC members

Abstract

The problem of constructing a common equilibrium efficient frontier with fixed-sum inputs or outputs is studied in this paper. To do this, all decision making units are classified into different classes based on their size score and in each class, a common equilibrium efficient frontier is constructed. In the developed procedure, we consider undesirable products and weak disposability assumption is used to handle these products. The advantage of the classification is that DMUs with more similarity in size are in the same class and this makes the input/output tradeoff more rational. To clarify the applicability of the proposed approach, it has been applied to a real case on OPEC crude oil production in 2012.