A subgroup dominance-based benefit of the doubt method for addressing rank reversals: A case study of the human development index in Europe

Weihua Su, Sibo Chen, Chonghui Zhang and Kevin W. Li

European Journal of Operational Research, 2023, vol. 307, issue 3, 1299-1317

Abstract: The benefit of the doubt (BoD) is a non-parametric weighting method that aims to maximize the relative composite indicator value of each decision-making unit (DMU). A well-known issue of BoD-based ranking of DMUs is the rank reversal problem when DMUs are deleted or added. The fundamental reason for rank reversals is that deleting (or adding) a DMU influences the generated weight by changing the frontier surface. To address the rank reversal problem, this paper proposes a subgroup dominance-based BoD model (SD-BoD). Based on the individual weights obtained from a classic BoD model, a dominance-based pairwise comparison mechanism is put forward to ensure comparability of different DMUs. Moreover, motivated by the data envelopment analysis idea, we construct a sequential frontier surface partition technique and establish a DMU ranking framework based on subgroup dominance, which helps reduce weight variation due to DMU addition or deletion. Finally, the effectiveness of the SD-BoD method is illustrated by comparing and analyzing the Human Development Indices of the 28 European regions.

Keywords: Rank reversal; Benefit of the doubt; Subgroup dominance; Human development index; Composite indicators (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:307:y:2023:i:3:p:1299-1317

DOI: 10.1016/j.ejor.2022.11.030

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