Title :

Value-based performance and its decomposition into direct price and quantity effects

Author(s) :

Boussemart, Jean-Philippe [Auteur]
Lille économie management - UMR 9221 [LEM]
Leleu, Herve [Auteur]
Lille économie management - UMR 9221 [LEM]
Parvulescu, Raluca [Auteur]
Lille économie management - UMR 9221 [LEM]

Journal title :

European Journal of Operational Research

Pages :

298-311

Publisher :

Elsevier

Publication date :

2022-11-16

ISSN :

0377-2217

HAL domain(s) :

Humanities and Social Sciences/Economics and Finance
Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

Based on the idea that in real markets firms have some freedom to set their output prices and negotiate input unit costs, this paper introduces a new approach for value-based performance decomposition as the product of ...
Show more >Based on the idea that in real markets firms have some freedom to set their output prices and negotiate input unit costs, this paper introduces a new approach for value-based performance decomposition as the product of direct price and quantity effects. Our framework relies on the axiomatization of a value transformation set on which quantity, price and value distance functions can be defined. The methodology developed allows for various degrees of dependency between quantity and price as well as for different degrees of freedom in price setting. The value-based performance decomposition can encompass all traditional measures such as cost, revenue, profit and profitability efficiencies. An application on French cattle farms illustrates the appeal of our approach for practitioners.Show less >

Language :

Anglais

Peer reviewed article :

Oui

Audience :

Internationale

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL