28 June 2015 8 3K Report

I am looking for the answers of the following questions. Any kind of help is highly appreciated.

1. In the primal form of DEA, we want to maximize the efficiency (θ) of any Decision Making Unit (DMU). But in case of dual form, what (i.e. which parameter) we want to minimize?

2. What is the physical significance/interpretation of the decision variable(s) (λ1, λ2, λ3...) used in the constraints of dual form? In other words, what actually λ1 or λ2 these parameters represent and what do their values represent for a particular decision making unit (say DMU2), when they are addressed in the efficiency reference set or benchmarks?

3. What are the physical interpretations of the constraints used in the dual form?

Thanks in advance...

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