Towards criteria selection in DEA by conjoint analysis

Abstract

Data envelopment analysis (DEA) is a method for evaluating the relative efficiency of decision making units (DMUs) with multiple inputs and outputs. DEA results depend heavily on the criteria included into analysis. Therefore the selection of adequate criteria is one of the most important phases in DEA application. In this paper, statistical technique, Conjoint analysis is suggested as supporting method for the selection of the criteria. Conjoint analysis determines the relative importance of each criterion, based on stakeholders' preference, which can be used as guide for selection of inputs and outputs for efficiency assessment of DMUs.