Alternative secondary goals in DEA cross-efficiency evaluation

As an extension to data envelopment analysis (DEA), cross-efficiency evaluation not only provides a ranking among the decision-making units (DMUs) but also eliminates unrealistic DEA weighting schemes without requiring a priori information on weight restrictions. A factor that possibly reduces the u...

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Bibliographic Details
Published inInternational journal of production economics Vol. 113; no. 2; pp. 1025 - 1030
Main Authors Liang, Liang, Wu, Jie, Cook, Wade D., Zhu, Joe
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 01.06.2008
Elsevier
Elsevier Sequoia S.A
SeriesInternational Journal of Production Economics
Subjects
Cross efficiency
Data envelopment analysis
Data envelopment analysis (DEA)
Decision making units
Efficiency
Studies
Data envelopment analysis (DEA)
Cross efficiency
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Summary:As an extension to data envelopment analysis (DEA), cross-efficiency evaluation not only provides a ranking among the decision-making units (DMUs) but also eliminates unrealistic DEA weighting schemes without requiring a priori information on weight restrictions. A factor that possibly reduces the usefulness of the cross-efficiency evaluation method is that the cross-efficiency scores may not be unique due to the presence of alternate optima. As a result, it is recommended that secondary goals be introduced in cross-efficiency evaluation. This paper seeks to extend the model of Doyle and Green [1994. Efficiency and cross efficiency in DEA: Derivations, meanings and the uses. Journal of the Operational Research Society 45 (5), 567–578], by introducing a number of different secondary objective functions. The models are illustrated with examples.
ISSN:0925-5273
1873-7579
DOI:10.1016/j.ijpe.2007.12.006