Incorporating Preference Information to Data Envelopment Analysis

Tarja Joro and Pekka Korhonen
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Tarja Joro: University of Alberta

Chapter Chapter 6 in Extension of Data Envelopment Analysis with Preference Information, 2015, pp 65-93 from Springer

Abstract: Abstract As discussed, DEA provides the DMUs under evaluation with an efficiency score and a projection point on the efficient frontier. The prior one describes the unit’s performance with respect to the empirical efficient or best practice frontier, reflecting the distance from it. The latter one identifies the unit’s projection on the efficient frontier and thus acts as a target point or a benchmark that the DMU should achieve in order to become efficient through radial output expansion and/or input reductions. Preference information can be incorporated to adjust both the efficiency scores and the targets.

Keywords: Efficiency Score; Assurance Region; Preference Information; Efficient Frontier; Weight Restriction (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-1-4899-7528-7_6

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