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

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.