New method accurately evaluates profit efficiency without price data.
The article introduces a new method called pro-efficiency to evaluate how well a company is performing without needing detailed price information. By using a simple linear programming model, the researchers were able to measure profit efficiency accurately. They applied this method to a securities company and found a strong connection between the company's actual profit data and the pro-efficiency measures of its branches. This approach provides a better understanding of a company's performance beyond just technical efficiency.