Weight profiles in cross-efficiency evaluation based on hypervolume maximization

Javier Alcaraz, Juan Aparicio, Juan Fco Monge and Nuria Ramón

Socio-Economic Planning Sciences, 2022, vol. 82, issue PB

Abstract: In this paper, we propose and discuss a new model in order to obtain the weight profiles to be used in the calculation of cross-efficiency scores in Data Envelopment Analysis (DEA). In the standard DEA literature, total flexibility in the selection of weights has been strongly criticized due to the fact that some inputs and/or outputs may have no contribution (zero weights) to the efficiency scores. Although cross evaluation somewhat mitigates the effect of these unrealistic weighting schemes on the amalgamation of weights that standard DEA models produce, we propose a method that ensures strictly positive and balanced weights to be used in cross-efficiency evaluation. In particular, we propose an optimization model based on hypervolume maximization as a method for selecting a suitable weight profile for each evaluated unit to be used in cross-efficiency. The model is solved through Second-Order Cone Programming (SOCP). As a result, the solution obtained is unique and the Production Possibility Set (PPS) is not modified. Another advantage of the proposed method, among others, is that it does not need subjective expert opinions or full-dimension efficient facets of the polyhedral PPS, but if available, it can be easily incorporated into the model. The approach introduced is illustrated through a numerical example. We also present some theoretical results.

Keywords: Data envelopment analysis; Cross-efficiency; Weight profile; Second-order cone programming (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0038012122000489
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:soceps:v:82:y:2022:i:pb:s0038012122000489

DOI: 10.1016/j.seps.2022.101270

Access Statistics for this article

Socio-Economic Planning Sciences is currently edited by Barnett R. Parker

More articles in Socio-Economic Planning Sciences from Elsevier
Bibliographic data for series maintained by Catherine Liu ().