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Stochastic DEA with ordinal data applied to a multi-attribute pricing problem

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  • Wu, Desheng (Dash)
  • Lee, Chi-Guhn

Abstract

Multiple attribute pricing problems are highly challenging due to the dynamic and uncertain features in the associated market. In this paper, we address the condominium multiple attribute pricing problem using data envelopment analysis (DEA). In this study, we simultaneously consider stochastic variables, non-discretionary variables, and ordinal data, and present a new type of DEA model. Based on our proposed DEA, an effective performance measurement tool is developed to provide a basis for understanding the condominium pricing problem, to direct and monitor the implementation of pricing strategy, and to provide information regarding the results of pricing efforts for units sold as well as insights for future building design. A case study is executed on a leading Canadian condominium developer.

Suggested Citation

  • Wu, Desheng (Dash) & Lee, Chi-Guhn, 2010. "Stochastic DEA with ordinal data applied to a multi-attribute pricing problem," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1679-1688, December.
    • Handle: RePEc:eee:ejores:v:207:y:2010:i:3:p:1679-1688
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    References listed on IDEAS

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    2. Jinpei Liu & Mengdi Fang & Feifei Jin & Chengsong Wu & Huayou Chen, 2020. "Multi-Attribute Decision Making Based on Stochastic DEA Cross-Efficiency with Ordinal Variable and Its Application to Evaluation of Banks’ Sustainable Development," Sustainability, MDPI, vol. 12(6), pages 1-15, March.
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    5. Wanke, Peter & Barros, C.P. & Figueiredo, Otávio, 2016. "Efficiency and productive slacks in urban transportation modes: A two-stage SDEA-Beta Regression approach," Utilities Policy, Elsevier, vol. 41(C), pages 31-39.
    6. Xiao, Helu & Ren, Tiantian & Zhou, Zhongbao & Liu, Wenbin, 2021. "Parameter uncertainty in estimation of portfolio efficiency: Evidence from an interval diversification-consistent DEA approach," Omega, Elsevier, vol. 103(C).
    7. Rashed Khanjani Shiraz & Adel Hatami-Marbini & Ali Emrouznejad & Hirofumi Fukuyama, 2020. "Chance-constrained cost efficiency in data envelopment analysis model with random inputs and outputs," Operational Research, Springer, vol. 20(3), pages 1863-1898, September.

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