An interactive approach to improve estimates of value efficiency in data envelopment analysis

An interactive approach to improve estimates of value efficiency in data envelopment analysis

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Article ID: iaor20043387
Country: Netherlands
Volume: 149
Issue: 3
Start Page Number: 688
End Page Number: 699
Publication Date: Sep 2003
Journal: European Journal of Operational Research
Authors: , ,
Abstract:

Halme et al. recently presented an approach for incorporating preference information in data envelopment analysis (DEA). In their paper, they develop value efficiency, an extension of the concept of efficiency in DEA. the paper presented an approach to estimate lower bounds for the value efficiency scores – efficiency measures that reflect the decision-maker's (DM's) preferences. In this paper, we develop some related concepts, and present two refinements: (1) Some bounds on the value efficiency scores that may be obtained without any DM involvement; and (2) A way of precisely measuring value efficiency scores with minimal DM involvement. The approach can also be used to explore whether certain underlying assumptions are met.

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