EVALUATION OF PRICE INNOVATION IMPACT ON TELECOMMUNICATION INDUSTRY IN CONGO BRAZZAVILLE BASED ON DEA MODEL

This analysis evaluated price innovation impact on the telecommunication industry using a non-parametric approach based on linear programming which is conducted to measure the relative efficiency of a set of similar Decision-Making Units (DMUs). The DEA model evaluated the efficiency of various prices for the different kinds of services. Each company was assigned a set of efficiency scores for the period 2009 to 2016. Thus the data for this study was collected through an individual’s company website and by visiting the company for the periods 2009-2016. The sample comprises four telecommunication companies in Congo. The analysis measured Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH) technical efficiency scores using the Efficiency Measurement System (EMS Version 1.3, 2000). Therefore the results showed two out of seven variables are found statistically significant at the significant level of 0.05. The negative coefficient of large indicates that a large firm is more likely efficient than a small firm. The results also show that government ownership-based firm is more likely to be efficient than domestic ownership-based firm.