Bootstrap results for a measure of market efficiency

This study investigates the measurement of the efficiency of product markets by means of Data Envelopment Analysis (DEA). To demonstrate how comparing average efficiencies derived by DEA across markets may lead to conclusions driven mainly by the effects of sample size when the samples differ substantially in the number of observations, samples for computers and computer components are analysed. In the prior work, heterogeneous products were analysed. Despite the fact that this analysis is based on a homogeneous set of products, substantial differences concerning the relative efficiency of these products are found. The efficiency of individual products is also assessed using a bootstrap variant of DEA. The bootstrap results obtained in this study indicate that the standard scores reported in other studies reflect the relative differences in average market efficiency reasonably well.