Preference, production and performance in data envelopment analysis

Preference, production and performance in data envelopment analysis

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Article ID: iaor20072116
Country: Germany
Volume: 145
Issue: 1
Start Page Number: 105
End Page Number: 127
Publication Date: Jul 2006
Journal: Annals of Operations Research
Authors: , ,
Abstract:

This paper attempts to provide a systematic approach to the DEA model building. To this end, we try to identify some essential aspects of DEA modelling. Three key building blocks in a DEA model are identified: they are preference order, production possibility set and performance measure. It is shown that the preferences and performance measurements used in the standard DEA models are only particular examples in this framework. It is also illustrated in this work that this methodology is useful in building new DEA models to handle nonstandard applications such as those that involve non-Pareto preferences or undesirable inputs–outputs.

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