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Value-based data envelopment analysis: a piece-wise linear programming approach

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  • Dimitris K. Despotis
  • Dimitris Sotiros

Abstract

Incorporating value judgments in data envelopment analysis (DEA) is a broad methodological framework that facilitates driving the efficiency assessments in line with individual preferences. Value-based DEA is a recent development that resorts to value assessment protocols from multiple criteria decision analysis (MCDA) to transform the original input/output data to a value scale. In this context, we introduce in this paper a piece-wise linear programming approach to value-based DEA, by employing a data transformation-variable alteration technique and assurance region constraints. We outline our approach by revisiting a previous efficiency assessment study drawn from the literature.

Suggested Citation

  • Dimitris K. Despotis & Dimitris Sotiros, 2014. "Value-based data envelopment analysis: a piece-wise linear programming approach," International Journal of Multicriteria Decision Making, Inderscience Enterprises Ltd, vol. 4(1), pages 47-68.
    • Handle: RePEc:ids:ijmcdm:v:4:y:2014:i:1:p:47-68
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    Cited by:

    1. Michalis Doumpos & Alexis Guyot & Emilios Galariotis & Constantin Zopounidis, 2020. "Assessing the quality of life in French municipalities: a multidimensional approach," Annals of Operations Research, Springer, vol. 293(2), pages 789-808, October.

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