DEA models for minimizing weight disparity in cross-efficiency evaluation

Wang Y-M, Chin K-S and S Wang
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Wang Y-M: Fuzhou University, Fuzhou, PR China
Chin K-S: City University of Hong Kong, Kowloon Tong, Hong Kong
S Wang: The University of Manchester, Manchester, UK

Journal of the Operational Research Society, 2012, vol. 63, issue 8, 1079-1088

Abstract: Cross-efficiency evaluation is a commonly used approach for ranking decision-making units (DMUs) in data envelopment analysis (DEA). The weights used in the cross-efficiency evaluation may sometimes differ significantly among the inputs and outputs. This paper proposes some alternative DEA models to minimize the virtual disparity in the cross-efficiency evaluation. The proposed DEA models determine the input and output weights of each DMU in a neutral way without being aggressive or benevolent to the other DMUs. Numerical examples are tested to show the validity and effectiveness of the proposed DEA models and illustrate their significant role in reducing the number of zero weights.

Date: 2012
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