The role of benchmarking for yardstick competition

Burns, Phil; Jenkins, Cloda; Riechmann, Christoph

doi:10.1016/j.jup.2005.02.002

Cited by 22 publications

(12 citation statements)

References 7 publications

(9 reference statements)

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“…It is commonly accepted that firms' performance is influenced not only by the skills of their managers in organising production activities, but also by a set of variables that are beyond the control of firms' managers, such as the characteristics of the environment in which production takes place or the impact of luck, be it good or bad. In the provision of water services, the nature of technical interactions between inputs and outputs is strongly conditioned by the environments in which water utilities operate (Burns, Jenkins, & Riechmann, 2005;Fabbri & Fraquelli, 2000), and the heterogeneity of these operating environments presents a major difficulty in assessing relative levels of performance. This difficulty becomes even greater when, instead of an overall measure of technical efficiency, input-specific scores are computed.…”

Section: Introductionmentioning

confidence: 99%

Accounting for operating environments in measuring water utilities’ managerial efficiency

Picazo‐Tadeo

González‐Gómez

Sáez-Fernández

2009

The Service Industries Journal

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In this paper adjusted input-specific scores of technical efficiency are computed for a sample of Spanish water utilities. Performance is adjusted by netting out efficiency scores from the effect of operating environments and statistical noise. The results show that computation of adjusted efficiency scores at the input level manifestly improves the assessment of utilities' performance in our sample of water utilities. In addition, several environmental variables capable of affecting input-specific technical management are discovered, ownership or demand seasonality among them. Finally, distributions of conventional and adjusted scores of technical performance are found to be statistically different for some inputs.

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Section: Introductionmentioning

confidence: 99%

Accounting for operating environments in measuring water utilities’ managerial efficiency

Picazo‐Tadeo

González‐Gómez

Sáez-Fernández

2009

The Service Industries Journal

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“…As tariffs are based on the relative performance of a firm, yardstick regulation is generally seen as a powerful tool both for giving incentives for productive efficiency as well as for rent extraction (Tangerås, 2002;Burns, Jenkins, and Riechmann, 2005).…”

Section: Yardstick Competitionmentioning

confidence: 99%

Industry structure and collusion with uniform yardstick competition: Theory and experiments

Dijkstra

Haan

Mulder

2017

International Journal of Industrial Organization

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We study cartel stability in an industry that is subject to uniform yardstick regulation. In a theoretical model, we show that the number of symmetric firms does not affect collusion. In a laboratory experiment, however, we do find an effect. If anything, increasing the number of firms facilitates collusion. Our theory suggests that an increase in heterogeneity increases the regulated price if firms do not collude, but also makes collusion harder, rendering the net effect ambiguous. Our experiment suggests that the effect of collusion is stronger.

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“…the short-run maintenance model and the long-run service model. For a broad discussion see Burns et al (2005). The first model incorporates operating expenditures while the second model incorporates total expenditures (operating expenditures plus capital costs).…”

Section: Model Specificationmentioning

confidence: 99%

Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission

Nieswand¹,

Cullmann²,

Neumann³

2010

Review of Network Economics

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We empirically demonstrate a practical approach of efficiency evaluation with limited data availability in some regulated industries. We apply PCA-DEA for radial efficiency measurement to U.S. natural gas transmission companies in 2007. PCA-DEA reduces dimensions of the optimization problem while maintaining most of the variation in the original data. Our results suggest that the methodology reduces the probability of over-estimation of individual firm-specific performance.

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The role of benchmarking for yardstick competition

Cited by 22 publications

References 7 publications

Accounting for operating environments in measuring water utilities’ managerial efficiency

Accounting for operating environments in measuring water utilities’ managerial efficiency

Industry structure and collusion with uniform yardstick competition: Theory and experiments

Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission

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