This paper explores the issue of banking efficiency in Central Europe by applying the Fourier functional form and the stochastic cost frontier approach in calculating inefficiencies for a large sample of German, Austrian, Swiss and Luxembourg banks between 1997 and 2003. The findings suggest that the largest sized banks are generally the least efficient banks and the smallest sized banks are th...

The goal of this paper is to shed light on the statistical economies scale achievable from sharing storage between multiple renewable generators. To demonstrate these in practice, we present an extensive study using real-world wind data a grid equispaced generators common battery. Each turn contracted meet certain demand profile prescribed level reliability. Interestingly, diversity generation ...

Scale economies are commonplace in operations, yet, due to analytical challenges, relatively little is known about how ...rms should compete in their presence. This paper presents a model of competition between two ...rms that face scale economies; i.e., each ...rm’s cost per unit of demand is decreasing in demand. A general framework is used, which incorporates competition between two service ...

The facility location problem described in this paper comes from an industrial application in the slaughterhouse industry of Norway. Investigations show that the slaughterhouse industry experiences economies of scale in the production facilities. We examine a location-allocation problem focusing on the location of slaughterhouses, their size and the allocation of animals in the different farmin...

We provide an extensive and general investigation of the effects on industry performance (profits and social welfare) of exogenously changing the number of firms in a Cournot framework. This amounts to an in-depth exploration of the well-known trade-off between competition and production efficiency. We establish that under scale economies, welfare is maximized by a finite number of firms. Our r...

This letter will take an example from the Japanese local telecommunications industry in the 1990s and analyze the cost structures of a basic service and an advanced service, focusing on the economies of scale and scope. Here, the basic service is defined as the plain old telephone service (POTS) while the advanced service the leased circuit service. There are three points we will make: first, t...