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Ranking Decision Making Units: The Cross-Efficiency Evaluation

In: Handbook of Operations Analytics Using Data Envelopment Analysis

Author

Listed:
  • José L. Ruiz

    (Centro de Investigación Operativa, Universidad Miguel Hernández)

  • Inmaculada Sirvent

    (Centro de Investigación Operativa, Universidad Miguel Hernández)

Abstract

This chapter surveys the literature on the cross-efficiency evaluation, which is a methodology for ranking decision making units (DMUs) involved in a production process regarding their efficiency. Cross-efficiency evaluation has been developed in the context of analyses of relative efficiency carried out with Data Envelopment Analysis (DEA). It is usually claimed that the DEA efficiency scores cannot be used for ranking, because they result from a self-evaluation of units based on DMU-specific input and output weights. Cross-efficiency evaluation, in contrast, provides a peer-appraisal in which each DMU is evaluated from the perspective of all of the others by using their DEA weights. This makes it possible to derive an ordering. We make an exhaustive review of the existing work on the different issues related to the cross-efficiency evaluation. Other uses of this methodology different from the ranking of DMUs as well as the extensions that have been developed are also outlined.

Suggested Citation

  • José L. Ruiz & Inmaculada Sirvent, 2016. "Ranking Decision Making Units: The Cross-Efficiency Evaluation," International Series in Operations Research & Management Science, in: Shiuh-Nan Hwang & Hsuan-Shih Lee & Joe Zhu (ed.), Handbook of Operations Analytics Using Data Envelopment Analysis, chapter 0, pages 1-29, Springer.
    • Handle: RePEc:spr:isochp:978-1-4899-7705-2_1
    DOI: 10.1007/978-1-4899-7705-2_1
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    Cited by:

    1. Borrás, Fernando & Ruiz, José L. & Sirvent, Inmaculada, 2023. "Peer evaluation through cross-efficiency based on reference sets," Omega, Elsevier, vol. 114(C).
    2. Aparicio, Juan & Zofío, José L., 2021. "Economic cross-efficiency," Omega, Elsevier, vol. 100(C).
      • Aparicio, J. & Zofío, J.L., 2019. "Economic Cross-Efficiency," ERIM Report Series Research in Management ERS-2019-001-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

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