Empirical Economics

, Volume 38, Issue 1, pp 119–137 | Cite as

Analysis of product efficiency in the Korean automobile market from a consumer’s perspective

  • Inha Oh
  • Jeong-Dong Lee
  • Seogwon Hwang
  • Almas Heshmati
Original Paper


In this study we develop and describe a conceptual and methodological framework to measure technical and allocative efficiency at the product level considering consumer choice, which encompasses overall efficiency. Empirically, we combined data envelopment analysis and a discrete choice model in order to measure efficiency levels. The suggested framework is applied to the Korean automobile market. The relationship between the level of efficiency and market performance is discussed in terms of market share.


DEA Product efficiency Consumers utility Automobile market South Korea 

JEL Classification

C14 C25 D13 D61 L92 


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Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  • Inha Oh
    • 1
  • Jeong-Dong Lee
    • 2
  • Seogwon Hwang
    • 3
  • Almas Heshmati
    • 2
  1. 1.Korea Energy Economics InstituteGyeonggi-doKorea
  2. 2.Technology Management, Economics and Policy Program (TEMEP)Seoul National UniversitySeoulSouth Korea
  3. 3.Science and Technology Policy InstituteSeoulSouth Korea

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