ASSESSING THE RELATIVE EFFICIENCY OF DECISION-MAKING UNITS USING DEA MODELS WITH WEIGHT RESTRICTIONS

In models of data envelopment analysis (DEA), an optimal set of input and output weights is generally assumed to represent the assessed deci sion making unit (DMU) in the best light in comparison to all the othe r DMUs. The paper shows that this may not be comet if absolute weight bounds or some other weight restrictions are added to the model. A con sequence may be that the model will underestimate the relative efficie ncy of DMUs. The incorporation of weight restrictions in a maximin DEA model is suggested. This model can be further converted to more opera tional forms, which are similar to the classical DEA models.