We conduct an analysis of the “efficiency gap” using tools from economic theory and find serious flaws in the measure. In particular, we show that the efficiency gap contains an peculiar form of cost benefit analysis which is hard to defend, that the recommendations for the use of the...

We introduce an ordinal model of efficiency measurement. Our primitive is a notion of e ciency that is comparative, but not cardinal or absolute. In this framework, we postulate axioms that we believe an ordinal efficiency measure should satisfy. Primary among these are choice consistency and...