Abstract
In this paper, we define comparative advantage and disadvantage within the framework of Data Envelopment Analysis (DEA). We develop models that address the measurement of comparative advantage and disadvantage entirely in terms of proportional changes in levels of output and input activities. The models allow inclusion of explicit limits on admissible tradeoffs across both types of activities. The assessment of comparative advantage and disadvantage establishes a framework for competitor analysis and the feasibility and desirability of strategic alliances.
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Iqbal Ali, A., Lerme, C.S. Comparative advantage and disadvantage in DEA. Annals of Operations Research 73, 215–232 (1997). https://doi.org/10.1023/A:1018929228294
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DOI: https://doi.org/10.1023/A:1018929228294