Pricing decision‐making units

Pricing decision‐making units

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Article ID: iaor20132527
Volume: 64
Issue: 4
Start Page Number: 619
End Page Number: 621
Publication Date: Apr 2013
Journal: Journal of the Operational Research Society
Authors: , ,
Keywords: programming: linear
Abstract:

In this note we extend the standard DEA paradigm to address the question of how one can price DMUs (decision‐making units). To do this we use an adjoint transformation to the technology generated by these DMUs which links to traditional linear programming theory of the firm and is similar to pricing portfolios in financial markets. We also provide a numerical example illustrating the practicality of the proposed method.

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