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Dominance at the divisional efficiencies level in network DEA: the case of two-stage processes

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We introduce in this paper the notion of dominance in the divisional efficiencies space in Network Data Envelopment Analysis. We argue that, irrespectively of the method used, a successful efficiency evaluation protocol should satisfy the dominance property at the divisional efficiencies level. In particular, there should not exist any other feasible solution in the assessment model, suboptimal in terms of the optimality criterion, that provides stage efficiencies scores at least as high as the assessed ones and higher for at least one stage. Then, we investigate the dominance property for the relational model and the additive efficiency decomposition method for general two-stage series processes. We provide an example showing that these methods do not comply with the dominance requirement at the divisional efficiencies level and lead to controversial results.

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Data Envelopment Analysis Network DEA Relational model Efficiency decomposition Dominance property

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Citação

Sotiros, D., G. Koronakos and D. K. Despotis (2018) Dominance at the divisional efficiencies level in network DEA: The case of two-stage processes,in Emrouznejad and Thanassoulis (eds.), Data Envelopment Analysis and Performance Measurement: Recent Developments: Proceedings of the DEA40: International Conference of Data Envelopment Analysis, Aston Business School

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