Ricerc@Sapienza

In this paper, we present a methodology that explores PROMETHEE structures to compose a Cost Efficiency Indicator. Directional distance functions (DDF) were employed to measure the technical and allocative efficiency of decision units as an advance for the traditional radial measurements of DEA (Data Envelopment Analysis) models.

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.