Value Efficiency Analysis in Practice

Abstract

AbstractThe value efficiency analysis (VEA) is an approach, in which the most preferred solution (MPS) plays a key role in the analysis as described in Chap. 7. For a rational DM any point on the efficient frontier of the production possibility set is a possible and reasonable choice. If the production possibility set is convex, then the efficient given units are only a finite subset of the whole (uncountable) efficient frontier. In this case, the final choice of a DM is very seldom—if ever, a given efficient unit—if he/she freely searches for the MPS on the efficient frontier.KeywordsEfficiency ScoreEfficient FrontierTangent ConeEfficient UnitMultiple Criterion Decision MakingThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.