Sensitivity of efficiency classifications in the additive model of data envelopment analysis

A. CHARNES Center for Cybernetic Studies, College of Business Administration, 5.202 The University of Texas at Austin, U.S.A

S. HAAG Department of Information Systems and Management Science, The University of Texas at Arlington, Arlington, TX, 76019, U.S.A

P. JASKA Department of Information Systems and Management Science, The University of Texas at Arlington, Arlington, TX, 76019, U.S.A

J. SEMPLE Department of Information Systems and Management Science, The University of Texas at Arlington, Arlington, TX, 76019, U.S.A

Pages 789-798 | Received 05 Jul 1991, Published online: 23 Apr 2007

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https://doi.org/10.1080/00207729208949248

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Abstract

In contrast to existing sufficient conditions for preservation of efficiency under special perturbations and matrix structural assumptions, sensitivity of the additive model's classifications in data envelopment analysis (DEA) is investigated by means of new DEA formulations focusing on the stability (sensitivity) of an organization's classification (whether efficient or inefficient). The formulations for the additive model are linear programming problems whose solutions yield a particular region of stability, a ‘cell’, in which an organization's classification remains unchanged. The largest such cell can always be easily computed for each organization and additionally theoretically characterized simply as optimal solutions of particular linear programming problems.

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