Abstract:
We provide a unifying framework synthesizing the dual spaces of production and value used in DEA efficiency measurement with some well-known linear programming (LP) problems. Specifically, we make use of the technology matrix to map intensity variables into input–output space, and the adjoint transformation of the technology matrix to map input–output prices into prices of intensity variables. We show how the diet problem, a classical LP problem, is related to DEA and also use the adjoint matrix to demonstrate a procedure for pricing efficient decision-making units. We further illustrate the relationship between benefit-of-the-doubt aggregation and the diet problem.
