Analysis of product efficiency in the Korean automobile market from a consumer’s perspective
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.
KeywordsDEA Product efficiency Consumers utility Automobile market South Korea
JEL ClassificationC14 C25 D13 D61 L92
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