Cross-efficiency aggregation in DEA models using the evidential-reasoning approach

Guo-liang Yang, Jian-bo Yang, Wen-bin Liu and Xiao-xuan Li

European Journal of Operational Research, 2013, vol. 231, issue 2, 393-404

Abstract: Cross-efficiency in data envelopment analysis (DEA) models is an effective way to rank decision-making units (DMUs). The common methods to aggregate cross-efficiency do not consider the preference structure of the decision maker (DM). When a DM’s preference structure does not satisfy the “additive independence” condition, a new aggregation method must be proposed. This paper uses the evidential-reasoning (ER) approach to aggregate the cross-efficiencies obtained from cross-evaluation through the transformation of the cross-efficiency matrix to pieces of evidence. This paper provides a new method for cross-efficiency aggregation and a new way for DEA models to reflect a DM’s preference or value judgments. Additionally, this paper presents examples that demonstrate the features of cross-efficiency aggregation using the ER approach, including an empirical example of the evaluation practice of 16 basic research institutes in Chinese Academy of Sciences (CAS) in 2010 that illustrates how the ER approach can be used to aggregate the cross-efficiency matrix produced from DEA models.

Keywords: Data envelopment analysis; Cross-efficiency; The evidential-reasoning approach (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:231:y:2013:i:2:p:393-404

DOI: 10.1016/j.ejor.2013.05.017

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