Efficiency evaluation in data envelopment analysis using strong defining hyperplanes

Cross-efficiency analysis in DEA generally uses a two-stage procedure: first, optimize a DMU’s individual efficiency score; next, push the efficiencies of all DMUs in a desired direction. In order to reduce subjective judgement in the second step, we provide a cross-efficiency method using only stro...

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Bibliographic Details
Published inOR spectrum Vol. 43; no. 2; pp. 441 - 465
Main Authors Dellnitz, Andreas, Reucher, Elmar, Kleine, Andreas
Format Journal Article
LanguageEnglish
Published Berlin, Heidelberg Springer 01.06.2021
Springer Nature B.V
Subjects
Algorithms
Cross-efficiency evaluation
Data envelopment analysis
Efficiency
Facet analysis
Hyperplanes
Strong defining hyperplanes
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Summary:Cross-efficiency analysis in DEA generally uses a two-stage procedure: first, optimize a DMU’s individual efficiency score; next, push the efficiencies of all DMUs in a desired direction. In order to reduce subjective judgement in the second step, we provide a cross-efficiency method using only strong defining hyperplanes of the underlying technology. We develop a new DEA-based algorithm, and prove its finiteness and correctness. To reduce the computational burden, we show how one can combine the procedure with a known beneath-and-beyond procedure. Numerical investigations—comprising real-world data—demonstrate the superiority of the new method.
ISSN:1436-6304
0171-6468
1436-6304
DOI:10.1007/s00291-021-00623-2