An incentive-based model for resource allocation in DEA

Abstract

The resource allocation problem has been considered as one of most critical concerns in many managerial applications. In this paper, we deal with the resource allocation problem in the context of Data Envelopment Analysis(DEA) and formulate a DEA-based model based on the concept of incentives. We use a goal-programming approach and formulate our proposed model as a bi-criteria optimization problem. Then, the model is converted to a single-objective problem by using the weighted sum method in Multiple Criteria Decision Making. Moreover, the proposed model is capable to take into account the restrictions that the decision maker aims to imply in the process of allocation.