eprintid: 13576
rev_number: 7
eprint_status: archive
userid: 353
dir: disk0/00/01/35/76
datestamp: 2016-08-04 09:48:57
lastmod: 2021-08-27 17:41:24
status_changed: 2016-08-04 09:48:57
type: article
metadata_visibility: show
item_issues_count: 1
creators_name: Halme, M.
creators_name: Joro, T.
creators_name: Korhonen, P.
creators_name: Salo, S.
creators_name: Wallenius, J.
creators_id: 7606
title: A Value Efficiency Approach to Incorporating Preference Information in Data Envelopment Analysis
ispublished: pub
keywords: Data Envelopment Analysis; Efficiency Analysis; Multiple Criteria Decision Making; Value Function
abstract: We develop a procedure and the requisite theory for incorporating preference information in a novel way in the efficiency analysis of Decision Making Units. The efficiency of Decision Making Units is defined in the spirit of Data Envelopment Analysis (DEA), complemented with Decision Maker's preference information concerning the desirable structure of inputs and outputs. Our procedure begins by aiding the Decision Maker in searching for the most preferred combination of inputs and outputs of Decision Making Units (for short, Most Preferred Solution) which are efficient in DEA. Then, assuming that the Decision Maker's Most Preferred Solution maximizes his/her underlying (unknown) value function, we approximate the indifference contour of the value function at this point with its possible tangent hyperplanes. Value Efficiency scores are then calculated for each Decision Making Unit comparing the inefficient units to units having the same value as the Most Preferred Solution. The resulting Value Efficiency scores are optimistic approximations of the true scores. The procedure and the resulting efficiency scores are immediately applicable to solving practical problems. Copyright © 1999, Institute for Operations Research and the Management Sciences.
date: 1999-01
date_type: published
publisher: INFORMS Inst.for Operations Res.and the Management Sciences
id_number: 10.1287/mnsc.45.1.103
creators_browse_id: 2062
full_text_status: none
publication: Management Science
volume: 45
number: 1
pagerange: 103-115
refereed: TRUE
issn: 0025-1909
coversheets_dirty: FALSE
fp7_project: no
fp7_type: info:eu-repo/semantics/article
citation:   Halme, M., Joro, T., Korhonen, P. <https://pure.iiasa.ac.at/view/iiasa/2062.html>, Salo, S., & Wallenius, J.  (1999).  A Value Efficiency Approach to Incorporating Preference Information in Data Envelopment Analysis.   Management Science 45 (1) 103-115. 10.1287/mnsc.45.1.103 <https://doi.org/10.1287/mnsc.45.1.103>.