Directional distance functions

Combining multi-criteria and directional distances to decompose non-compensatory measures of sustainable banking efficiency

Non compensatory choices are widespread in the economics, strategic management and decision making. Nevertheless, many assessments of productivity still fail to consider non-compensatory preference structures in the measure of the technical inefficiency. This paper proposes a preference elicitation schema, typical of Multi-criteria decision analysis, for the selection of the directional vector in the assessment of a sustainable productivity.

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