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Incorporating Preference Information to Data Envelopment Analysis

In: Extension of Data Envelopment Analysis with Preference Information

Author

Listed:
  • Tarja Joro

    (University of Alberta)

  • Pekka J. Korhonen

    (Aalto University)

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.

Suggested Citation

  • Tarja Joro & Pekka J. Korhonen, 2015. "Incorporating Preference Information to Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Extension of Data Envelopment Analysis with Preference Information, edition 127, chapter 0, pages 65-93, Springer.
    • Handle: RePEc:spr:isochp:978-1-4899-7528-7_6
    DOI: 10.1007/978-1-4899-7528-7_6
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