An IO–Modification of Potential Method

In this paper we are performing some modification of Potential Method so that it can be recognized as an Input-Output method. This approach is tested on the ‘Japan City Banks’ example taken from Cooper and all. [Seiford L. M. Cooper, W. W. and K. Tone. Data Envelopment Analysis. Kluwer, 2002]. where authors are using Data Envelop Analysis technique. It is known that DEA is not capable to distinguish ‘efficient’ Decision Making Units among themselves. In our approach this is not the case — we obtain the ranking od all units in consideration.