Alternative secondary goals in DEA cross-efficiency evaluation

Liang Liang, Jie Wu, Wade D. Cook and Joe Zhu

International Journal of Production Economics, 2008, vol. 113, issue 2, 1025-1030

Abstract: As an extension to data envelopment analysis (DEA), cross-efficiency evaluation not only provides a ranking among the decision-making units (DMUs) but also eliminates unrealistic DEA weighting schemes without requiring a priori information on weight restrictions. A factor that possibly reduces the usefulness of the cross-efficiency evaluation method is that the cross-efficiency scores may not be unique due to the presence of alternate optima. As a result, it is recommended that secondary goals be introduced in cross-efficiency evaluation. This paper seeks to extend the model of Doyle and Green [1994. Efficiency and cross efficiency in DEA: Derivations, meanings and the uses. Journal of the Operational Research Society 45 (5), 567-578], by introducing a number of different secondary objective functions. The models are illustrated with examples.

Date: 2008
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