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Additive DEA based on MCDA with imprecise information

M C Gouveia (), Luis Dias and C H Antunes
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M C Gouveia: ISCAC Coimbra
C H Antunes: INESC Coimbra

Journal of the Operational Research Society, 2008, vol. 59, issue 1, 54-63

Abstract: Abstract This work exploits links between Data Envelopment Analysis (DEA) and multicriteria decision analysis (MCDA), with decision making units (DMUs) playing the role of decision alternatives. A novel perspective is suggested on the use of the additive DEA model in order to overcome some of its shortcomings, using concepts from multiattribute utility models with imprecise information. The underlying idea is to convert input and output factors into utility functions that are aggregated using a weighted sum (additive model of multiattribute utility theory), and then let each DMU choose the weights associated with these functions that minimize the difference of utility to the best DMU. The resulting additive DEA model with oriented projections has a clear rationale for its efficiency measures, and allows meaningful introduction of constraints on factor weights.

Keywords: Data Envelopment Analysis; decision analysis; multi-criteria analysis; imprecise information (search for similar items in EconPapers)
Date: 2008
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DOI: 10.1057/palgrave.jors.2602317

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