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Context-dependent Data Envelopment Analysis

In: Quantitative Models for Performance Evaluation and Benchmarking

Author

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  • Joe Zhu

    (Worcester Polytechnic Institute)

Abstract

Adding or deleting an inefficient DMU or a set of inefficient DMUs does not alter the efficiencies of the existing DMUs and the best-practice frontier. The inefficiency scores change only if the best-practice frontier is altered. i.e., the performance of DMUs depends only on the identified best-practice frontier. In contrast, researchers of the consumer choice theory point out that consumer choice is often influenced by the context. e.g., a circle appears large when surrounded by small circles and small when surrounded by larger ones. Similarly a product may appear attractive against a background of less attractive alternatives and unattractive when compared to more attractive alternatives.

Suggested Citation

  • Joe Zhu, 2014. "Context-dependent Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Quantitative Models for Performance Evaluation and Benchmarking, edition 3, chapter 9, pages 153-174, Springer.
    • Handle: RePEc:spr:isochp:978-3-319-06647-9_9
    DOI: 10.1007/978-3-319-06647-9_9
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    Cited by:

    1. Fenfen Li & Bo Dai & Qifan Wu, 2021. "Dynamic Green Growth Assessment of China’s Industrial System with an Improved SBM Model and Global Malmquist Index," Mathematics, MDPI, vol. 9(20), pages 1-26, October.

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