Promoting Balance in Output Efficiencies for Cross-Efficiency Evaluation in Data Envelopment Analysis ()
ABSTRACT
Cross-efficiency evaluation
is recognized as an effective way of efficiency assessment for a set of decision making
units (DMUs) in the framework of data envelopment analysis (DEA). It has been
generally suggested that secondary goals be introduced for cross-efficiency
evaluation owing to the non-uniqueness of optimal solutions in self-evaluation.
This paper develops a variety of secondary goals in the spirit of promoting
balance in the output efficiencies of the DMU under evaluation. The proposed
models attempt to make each output contribute as equally as possible to the
self-evaluated efficiency. In this way, the weight flexibility can for one
thing be reduced by the introduced secondary goals with selections from
alternate optimal solutions, in addition to counting on the dilution of
flexibility in the subsequent peer-evaluation. The proposed approach might be
applicable to evaluation problems in which multiple outputs are considered
important and balance is encouraged to put all dimensions into sufficient use.
The effectiveness of the proposed approach and its comparisons with some
relevant secondary goals are illustrated empirically using numerical examples.
Share and Cite:
Chen, J. (2019) Promoting Balance in Output Efficiencies for Cross-Efficiency Evaluation in Data Envelopment Analysis.
Journal of Applied Mathematics and Physics,
7, 664-685. doi:
10.4236/jamp.2019.73047.
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