DEA and activity planning under asymmetric information

The productivity analysis literature has traditionally focused on the evalu ation of past performances. In this paper, we consider the post productivit y analysis problem of deciding which production plans to choose in the futu re given information from a productivity analysis. In particular, we demons trate that Data Envelopment Analysis (DEA) has an important role to play in the reallocation game following a normal productivity analysis. DEA estima tes reduce the information rents an agent can extract by "claiming" high co sts for the least reduced or most expanded activity. We also examine how to optimally combine DEA estimates with other information in a planning conte xt, including preference information, ex-ante cost reports and ex-post cost data.