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Promoting symmetric weight selection in data envelopment analysis: A penalty function approach

Stanko Dimitrov and Warren Sutton

European Journal of Operational Research, 2010, vol. 200, issue 1, 281-288

Abstract: Traditionally, data envelopment analysis models assume total flexibility in weight selection, though this assumption can lead to several variables being ignored in determining the efficiency score. Existing methods constrain weight selection to a predefined range, thus removing possible feasible solutions. As such, in this paper we propose the symmetric weight assignment technique (SWAT) that does not affect feasibility and rewards decision making units (DMUs) that make a symmetric selection of weights. This allows for a method of weight restrictions that does not require preference constraints on the variables. Moreover, we show that the SWAT method may be used to differentiate among efficient DMUs.

Keywords: Data; envelopment; analysis; Penalty; methods; Weight; restrictions (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (9)

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European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

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