Extension of Data Envelopment Analysis with Preference Information

Value Efficiency

  • Tarja Joro
  • Pekka J. Korhonen

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 218)

Table of contents

  1. Front Matter
    Pages i-xii
  2. Tarja Joro, Pekka J. Korhonen
    Pages 1-14
  3. Tarja Joro, Pekka J. Korhonen
    Pages 15-26
  4. Tarja Joro, Pekka J. Korhonen
    Pages 27-39
  5. Tarja Joro, Pekka J. Korhonen
    Pages 41-53
  6. Tarja Joro, Pekka J. Korhonen
    Pages 65-93
  7. Tarja Joro, Pekka J. Korhonen
    Pages 95-109
  8. Tarja Joro, Pekka J. Korhonen
    Pages 111-126
  9. Tarja Joro, Pekka J. Korhonen
    Pages 127-146
  10. Tarja Joro, Pekka J. Korhonen
    Pages 147-159
  11. Tarja Joro, Pekka J. Korhonen
    Pages 161-183
  12. Tarja Joro, Pekka J. Korhonen
    Pages 185-185
  13. Back Matter
    Pages 187-191

About this book


This book provides an introduction to incorporating preference information in Data Envelopment Analysis (DEA) with a special emphasis in Value Efficiency Analysis. In addition to theoretical considerations, numerous illustrative examples are included. Hence, the book can be used as a teaching text as well. Only a modest mathematical background is needed to understand the main principles. The only prerequisites are a) familiarity with linear algebra, especially matrix calculus; b) knowledge of the simplex method; and c) familiarity with the use of computer software.

The book is organized as follows. Chapter 1 provides motivation and introduces the basic concepts. Chapter 2 provides the basic ideas and models of Data Envelopment Analysis. The efficient frontier and production possibility set concepts play an important role in all considerations. That's why these concepts are considered more closely in Chapter 3. Since the approaches introduced in this study are inspired by Multiple Objective Linear Programming, the basic concepts of this field are reviewed in Chapter 4. Chapter 5 also compares and contrasts Data Envelopment Analysis and Multiple Objective Linear Programming, providing some cornerstones for approaches presented later in the book. Chapter 6 discusses the traditional approaches to take into account preference information in DEA. In Chapter 7, Value Efficiency is introduced, and Chapter 8 discusses practical aspects. Some extensions are presented in Chapter 9, and in Chapter 10 Value Efficiency is extended to cover the case when a production possibility set is not convex. Three implemented applications are reviewed in Chapter 11.


DEA Data Envelopment Analysis Non-Convex Value Efficiency Preference Information Production Possibility Set Value Efficiency Analysis

Authors and affiliations

  • Tarja Joro
    • 1
  • Pekka J. Korhonen
    • 2
  1. 1.Department of Accounting, Operations and Information SystemsAlberta School of Business, University of AlbertaEdmontonCanada
  2. 2.Department of Information and Service EconomySchool of Business Aalto UniversityHelsinkiFinland

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