Gap Minimization for Peer-Evaluation in DEA Cross-Efficiency

Anrong Yang, Zigang Zhang, Yishi Zhang and Dunliang Chen

Journal of Applied Mathematics, 2014, vol. 2014, 1-7

Abstract:

Cross-efficiency evaluation is an effective and widely used method for ranking decision making units (DMUs) in data envelopment analysis (DEA). Gap minimization criterion is introduced in aggressive and benevolent cross-efficiency methods to avoid possible extreme efficiency from peer-evaluation and to get equitable results. On the basis of this criterion, a weighted cross-efficiency method with similarity distance that, respectively, considers the aggressive and the benevolent formulations is proposed to determine cross-efficiency. The weights of the cross-evaluation determined by this method are positively influenced by self-evaluation and thus are propitious to resolving conflict. Numerical demonstration reveals the feasibility of the proposed method.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:hin:jnljam:453749

DOI: 10.1155/2014/453749

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