Using DEA to estimate the importance of objectives for decision makers
AbstractIn this paper we establish further connections between DEA and Multi-criteria Decision Analysis by suggesting a particular way to estimate preference weights for different objectives using DEA. We claim that the virtual multipliers obtained from a standard DEA model are not suitable to measure the preferences of a decision maker. Our suggestion takes advantage of the parallelism between DEA and the methodology proposed by Sumpsi et al. (1997) by projecting each unit on a linear combination of the elements of the pay-off matrix. Finally, we make an application of the proposed methodology to agricultural economics in a case study with Spanish data.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2004/50.
Length: 36 pages
Date of creation: 2004
Date of revision:
Data Envelopment Analysis; Multicriteria Decision Analysis; preferences; weights; virtual multipliers.;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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