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Alternative secondary goals in DEA cross-efficiency evaluation

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

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.

Suggested Citation

  • Liang, Liang & Wu, Jie & Cook, Wade D. & Zhu, Joe, 2008. "Alternative secondary goals in DEA cross-efficiency evaluation," International Journal of Production Economics, Elsevier, vol. 113(2), pages 1025-1030, June.
    • Handle: RePEc:eee:proeco:v:113:y:2008:i:2:p:1025-1030
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    References listed on IDEAS

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