The Measurement Of Production Congestion And Its Formation Caused By Industrial Competition

The meaning of congestion came into being in the 1980's, started the new field of economics, and it inspired great attention. Congestion is used to depict and analyzed the low efficient condition in the company when increased input but decreased output. In classical economics theory, congestion has been concerned; it referred to the uneconomic regions in product theory on equal-product curve beyond the ridgeline. This region is the usual region we mentioned. It mostly refers to the low efficient condition that is all productions include non-current assets and non-practicality assets improper allocation so as to decrease the efficiency of disposition.In this paper, we trace the research history and the theory meaning of the congestion, point out and sum up the representative methods in this field. The first is Fare et al (R. Fare,S. Grosskopf, C.A.K. Lovell,1985). This method is broadly used in many empirical study fields, for example, the efficiency estimate of medical treatment in public department. In the essence, this method is based on disposition to study and design the model. The other is advanced by Cooper et al.(Cooper,W.W,Thompson,R.G.,Thrall,R.M,1996), and it is used for China problem in the certain study . (Brockett, P. L, Cooper, W. W., Shin, H. C, Wang, Y., 1998). This method pays attention to compute the DEA model and its slacks variables; also it can easily get the slack variables for every index. Though these two methods all based on DEA method, their difference and relation is hotspot of this research field all along. But through the deeply analysis and comparison we think: Though they measure congestion both from the disposition point of view, but the principle of measurement is different. They all have their strength and weakness, the result has no comparison.