Protocols for MPS choices in VEA models with variable returns to scale

Panagiotis Ravanos () and Giannis Karagiannis ()
Additional contact information
Panagiotis Ravanos: Joint Research Center (JRC)
Giannis Karagiannis: University of Macedonia

Annals of Operations Research, 2025, vol. 351, issue 2, No 15, 1649 pages

Abstract: Abstract In this paper, we examine the implications of using different strongly efficient Decision Making Units (DMUs) as the Most Preferred Solution (MPS) in Value Efficiency Analysis (VEA) models with variable returns to scale. We provide protocols for consistent MPS choices, where a MPS choice is consistent if and only if the resulting VEA technology does not allow for free and/or unlimited production. In particular, we show that either a DMU that belongs to the set of strongly CCR-efficient DMUs or a combination of jointly strongly CCR-efficient DMUs constitute the only consistent MPS choices for both constant-returns-to-scale and variable-returns-to-scale VEA models. In addition, we show that the scale properties of the efficient VEA frontier are affected by the choice of the MPS and in essence depend on the range of the interval between the MPS’s right- and left-side scale elasticities.

Keywords: Value efficiency analysis; DEA; Variable returns to scale; Most preferred solution; Free production (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10479-024-06286-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:351:y:2025:i:2:d:10.1007_s10479-024-06286-w

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-024-06286-w

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().