Technology Selection in the Presence of Dual-Role Factors

Abstract

Technologies have varied strengths and weaknesses which require careful assessment by the purchasers. One of the uses of data envelopment analysis (DEA) is technology selection. The traditional models of DEA do not consider dual-role factors. The objective of this paper is to use a model for selecting the best technologies in the presence of dual-role factors. The model determines whether in a technology the factors are behaving predominantly like inputs, hence the technology would benefit from having less of the factors, like outputs where more of the factors are desirable, or where they are in equilibrium. A numerical example demonstrates the application of the method.