This paper investigates the nonparametric analysis of technology under non-convexity. The analysis extends two …; and Free Disposal Hull (FDH) models. We argue that, while the FDH model allows for non-convexity, its representation of … non-convexity is too extreme. We propose a new nonparametric model that relies on a neighborhood-based technology …

non-convexity. It applies to market exchange as well as contractual arrangements. We show that the Coase theorem continues … maximization under transaction costs and non-convexity. We examine the role of transaction costs and explore how the minimization …