Efficiency estimation in stochastic frontier models typically assumes that the underlying production technology is the same for all firms. There might, however, be unobserved differences in technologies that might be inappropriately labeled as inefficiency if such variations in technology are...

Due to a lack of information about the prices faced by consumers, demand functions are sometimes estimated using average prices, namely total revenue divided by the number of consumers. Examples of this type of estimation can be found for cinema, sporting events and the performing arts since box...