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DEA Cross Efficiency

In: Quantitative Models for Performance Evaluation and Benchmarking

Author

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  • Joe Zhu

    (Worcester Polytechnic Institute)

Abstract

While DEA has been proven an effective approach in identifying the best practice Best practice frontiers, its flexibility in weighting multiple inputs and outputs and its nature of self-evaluation have been criticized. The cross efficiency method is developed as a DEA extension to rank Rank DMUs with the main idea being to use DEA to do peer evaluation, rather than in pure self-evaluation mode. Cross efficiency has been further investigated by Doyle and Green. There are mainly two advantages for cross-evaluation method. It provides an ordering among DMUs and it eliminates unrealistic weight schemes without requiring the elicitation of weight restrictions from application area experts.

Suggested Citation

  • Joe Zhu, 2014. "DEA Cross Efficiency," International Series in Operations Research & Management Science, in: Quantitative Models for Performance Evaluation and Benchmarking, edition 3, chapter 4, pages 61-92, Springer.
    • Handle: RePEc:spr:isochp:978-3-319-06647-9_4
    DOI: 10.1007/978-3-319-06647-9_4
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