Using Analytical Hierarchy Process for Double Auction to Optimize Financial Performance of Private Higher Education Institutions

Abstract

Internal factors and external factors are used to measure the performance of higher education institutions. Internal factors include those whose criteria come from within the organization, while external factors are those whose criteria come from outside the organization. Of these two factors, measurement criteria that can help in decision-making about the development and expansion of higher education competence, including financial criteria, are needed. This study examines the optimization of the financial performance of private higher education institutions by applying the Analytic Hierarchy Process method and a proposed double auction framework. Financial criteria are critical to supporting the development and enhancing the competency of higher education institutions. The Analytical Hierarchy Process is used to prioritize 19 sub-criteria, with the Teaching Process Operational Cost Development sub-criterion scoring highest for each operational criterion. The double auction framework is proposed to facilitate decision-making for the development and further competence of private higher education institutions. This paper represents an important contribution to the evaluation of the financial performance of private higher education institutions by using a novel approach that incorporates a double auction framework.