the non-differentiability and implicit definition of boundary of production possibility set (pps) in data envelopment analysis (dea) are two important difficulties for obtaining directional characteristics, including different elasticity measures and marginal rates of substitution. also, imposing weight restrictions in dea models have some shortcomings and misunderstandings. in this paper we ut...

In this paper we introduce a scale elasticity measure based on directional distance function for multi-output-multi-input technologies and explore its fundamental properties. Specifically, we derive necessary and sufficient condition for equivalence of the scale elasticity measure based on the directional distance function with the input oriented and output oriented scale elasticity measures. W...

In this journal, Seldon (1986) recently criticized the arc elasticity concept as it is commonly taught in the principles course. In doing so, he resurrected the Lerner (1933a) measure of elasticity, which is based upon the lower values of price and quantity in a price change rather than the average values used in the traditional measure (i.e., the midpoint formula). Seldon argued that the Lerne...

We study the arbitrage free option pricing problem for constant elasticity of variance (CEV) model. To treat the stochastic aspect of the CEV model, we direct attention to the relationship between the CEV model and squared Bessel processes. Then we show the existence of a unique equivalent martingale measure and derive the Cox’s arbitrage free option pricing formula through the properties of sq...

One major benefit claimed for cloud computing is elasticity: the cost to a consumer of computation can grow or shrink with the workload. This paper offers improved ways to quantify the elasticity concept, using data available to the consumer. We define a measure that reflects the financial penalty to the consumer, from under-provisioning (leading to unacceptable latency or other QoS for request...

Several researchers have decomposed sales promotion elasticities based on household scanner panel data. A key result is that the majority of the sales promotion elasticity, about 74 percent on average, is attributed to secondary demand effects (brand switching) and the remainder to primary demand effects (timing acceleration and quantity increases). We demonstrate that this result does not impl...