The general hyperbolic frontier model: establishing fair output levels via parametric DEA

Abstract

This paper studies the problem of fairly allocating shares of a new and fixed output among a set of decision-making units under centralized management. To this end, we introduce a new parametric data envelopment analysis model that generalizes the previous parametric model for output allocation. In this model, it is possible to introduce value judgments and employ it under conditions of constant, decreasing or increasing returns to scale. We present numeric results to demonstrate the performance of our model.

Keywords:

• Data envelopment analysis
• resource allocation
• convex programming

Notes

Please note this paper has been re-typeset by Taylor & Francis from the manuscript originally provided to the previous publisher.