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3149. Restricting Weight Shares in the Benefit-of-the-Doubt Model
Invited abstract in session WC-44: MCDA and Composite Indicators: Issues, Advances and Applications 1, stream Multiple Criteria Decision Analysis.
Wednesday, 12:30-14:00Room: 20 (building: 324)
Authors (first author is the speaker)
| 1. | Panagiotis Ravanos
|
| Directorate S: Innovation in Science and Policymaking, Unit S3: Science for Modelling, Monitoring and Evaluation, European Commission, Joint Research Center | |
| 2. | Giulio Caperna
|
| Competence Centre on Composite Indicators and Scoreboards, Joint Research Centre of the European Commission | |
| 3. | Giannis Karagiannis
|
| Economics, University of Macedonia |
Abstract
In the construction of composite indicators by the Benefit-of-the-Doubt (BoD) model, proportional virtual weight restrictions (pie-shares) are frequently used to place bounds on the normalised indicators’ relative contribution to the composite for each assessed entity, based either on expert views or simply to prevent the occurrence of zero indicator weights. Two important issues associated with pie-share restrictions are that they cannot accommodate zero values for individual indicators and that they result in evaluating each assessed entity based on a different best-practice frontier, which makes the resulting BoD scores incomparable across entities. In this paper, we introduce a novel type of weight-share restrictions in the BoD model, which involve placing bounds on the share of each nornalised indicator’s weight to the sum of indicator weights rather than the product of an indicator and its weight, which is the case with pie-share restrictions. We show that weight share restrictions can accommodate zero values for individual indicators and that they result in evaluating all entities based on a common best-practice frontier, enabling the ranking of entities based on their BoD scores. We also discuss how, due to the nature of the BoD model, weight-share restrictions are the proper and most intuitive way to place an absolute bound on an indicator’s weight, and we illustrate our findings using data from the European Commission’s Cultural and Creative Cities Monitor.
Keywords
- Data Envelopment Analysis
- Efficiency Analysis
- Programming, Linear
Status: accepted
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