IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v39y2011i5p493-503.html
   My bibliography  Save this article

The use of OWA operator weights for cross-efficiency aggregation

Author

Listed:
  • Wang, Ying-Ming
  • Chin, Kwai-Sang

Abstract

Cross-efficiency evaluation is an effective way of ranking decision making units (DMUs) in data envelopment analysis (DEA). Existing approaches for cross-efficiency evaluation are mainly focused on the calculation of cross-efficiency matrix, but pay little attention to the aggregation of the efficiencies in the cross-efficiency matrix. The most widely used approach is to aggregate the efficiencies in each row or column in the cross-efficiency matrix with equal weights into an average cross-efficiency score for each DMU and view it as the overall performance measurement of the DMU. This paper focuses on the aggregation process of the efficiencies in the cross-efficiency matrix and proposes the use of ordered weighted averaging (OWA) operator weights for cross-efficiency aggregation. The use of OWA operator weights for cross-efficiency aggregation allows the decision maker (DM)'s optimism level towards the best relative efficiencies, characterized by an orness degree, to be taken into consideration in the final overall efficiency assessment and particularly in the selection of the best DMU.

Suggested Citation

  • Wang, Ying-Ming & Chin, Kwai-Sang, 2011. "The use of OWA operator weights for cross-efficiency aggregation," Omega, Elsevier, vol. 39(5), pages 493-503, October.
    • Handle: RePEc:eee:jomega:v:39:y:2011:i:5:p:493-503
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(10)00131-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. W-M Lu & S-F Lo, 2007. "A benchmark-learning roadmap for regional sustainable development in China," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(7), pages 841-849, July.
    2. Lu, Wen-Min & Lo, Shih-Fang, 2007. "A closer look at the economic-environmental disparities for regional development in China," European Journal of Operational Research, Elsevier, vol. 183(2), pages 882-894, December.
    3. Du, Juan & Liang, Liang & Chen, Yao & Bi, Gong-bing, 2010. "DEA-based production planning," Omega, Elsevier, vol. 38(1-2), pages 105-112, February.
    4. Kao, Chiang, 2010. "Malmquist productivity index based on common-weights DEA: The case of Taiwan forests after reorganization," Omega, Elsevier, vol. 38(6), pages 484-491, December.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. Asmild, Mette & Paradi, Joseph C. & Pastor, Jesus T., 2009. "Centralized resource allocation BCC models," Omega, Elsevier, vol. 37(1), pages 40-49, February.
    7. Chen, Tser-yieth, 2002. "An assessment of technical efficiency and cross-efficiency in Taiwan's electricity distribution sector," European Journal of Operational Research, Elsevier, vol. 137(2), pages 421-433, March.
    8. Chang, Hsihui & Choy, Hiu Lam & Cooper, William W. & Ruefli, Timothy W., 2009. "Using Malmquist Indexes to measure changes in the productivity and efficiency of US accounting firms before and after the Sarbanes-Oxley Act," Omega, Elsevier, vol. 37(5), pages 951-960, October.
    9. Shang, Jen & Sueyoshi, Toshiyuki, 1995. "A unified framework for the selection of a Flexible Manufacturing System," European Journal of Operational Research, Elsevier, vol. 85(2), pages 297-315, September.
    10. Fiordelisi, Franco & Molyneux, Phil, 2010. "Total factor productivity and shareholder returns in banking," Omega, Elsevier, vol. 38(5), pages 241-253, October.
    11. Cook, Wade D. & Liang, Liang & Zhu, Joe, 2010. "Measuring performance of two-stage network structures by DEA: A review and future perspective," Omega, Elsevier, vol. 38(6), pages 423-430, December.
    12. Liang Liang & Jie Wu & Wade D. Cook & Joe Zhu, 2008. "The DEA Game Cross-Efficiency Model and Its Nash Equilibrium," Operations Research, INFORMS, vol. 56(5), pages 1278-1288, October.
    13. Wu, Jie & Liang, Liang & Yang, Feng, 2009. "Achievement and benchmarking of countries at the Summer Olympics using cross efficiency evaluation method," European Journal of Operational Research, Elsevier, vol. 197(2), pages 722-730, September.
    14. Wang, Ying-Ming & Chin, Kwai-Sang, 2010. "Some alternative models for DEA cross-efficiency evaluation," International Journal of Production Economics, Elsevier, vol. 128(1), pages 332-338, November.
    15. Ramón, Nuria & Ruiz, José L. & Sirvent, Inmaculada, 2010. "On the choice of weights profiles in cross-efficiency evaluations," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1564-1572, December.
    16. Timothy Anderson & Keith Hollingsworth & Lane Inman, 2002. "The Fixed Weighting Nature of A Cross-Evaluation Model," Journal of Productivity Analysis, Springer, vol. 17(3), pages 249-255, May.
    17. Wu, Desheng Dash, 2009. "Performance evaluation: An integrated method using data envelopment analysis and fuzzy preference relations," European Journal of Operational Research, Elsevier, vol. 194(1), pages 227-235, April.
    18. Jie Wu & Liang Liang & Dexiang Wu & Feng Yang, 2008. "Olympics ranking and benchmarking based on cross efficiency evaluation method and cluster analysis: the case of Sydney 2000," International Journal of Enterprise Network Management, Inderscience Enterprises Ltd, vol. 2(4), pages 377-392.
    19. Green, Rodney H. & Doyle, John R. & Cook, Wade D., 1996. "Preference voting and project ranking using DEA and cross-evaluation," European Journal of Operational Research, Elsevier, vol. 90(3), pages 461-472, May.
    20. C-P Bao & T-H Chen & S-Y Chang, 2008. "Slack-based ranking method: an interpretation to the cross-efficiency method in DEA," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(6), pages 860-862, June.
    21. Muhittin Oral & Ossama Kettani & Pascal Lang, 1991. "A Methodology for Collective Evaluation and Selection of Industrial R&D Projects," Management Science, INFORMS, vol. 37(7), pages 871-885, July.
    22. Paradi, Joseph C. & Rouatt, Stephen & Zhu, Haiyan, 2011. "Two-stage evaluation of bank branch efficiency using data envelopment analysis," Omega, Elsevier, vol. 39(1), pages 99-109, January.
    23. 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.
    24. Ertay, Tijen & Ruan, Da, 2005. "Data envelopment analysis based decision model for optimal operator allocation in CMS," European Journal of Operational Research, Elsevier, vol. 164(3), pages 800-810, August.
    25. Wu, Jie & Liang, Liang & Chen, Yao, 2009. "DEA game cross-efficiency approach to Olympic rankings," Omega, Elsevier, vol. 37(4), pages 909-918, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soltanifar, Mehdi & Shahghobadi, Saeid, 2013. "Selecting a benevolent secondary goal model in data envelopment analysis cross-efficiency evaluation by a voting model," Socio-Economic Planning Sciences, Elsevier, vol. 47(1), pages 65-74.
    2. Ramón, Nuria & Ruiz, José L. & Sirvent, Inmaculada, 2011. "Reducing differences between profiles of weights: A "peer-restricted" cross-efficiency evaluation," Omega, Elsevier, vol. 39(6), pages 634-641, December.
    3. Wang, Ying-Ming & Chin, Kwai-Sang, 2010. "Some alternative models for DEA cross-efficiency evaluation," International Journal of Production Economics, Elsevier, vol. 128(1), pages 332-338, November.
    4. Ramón, Nuria & Ruiz, José L. & Sirvent, Inmaculada, 2010. "On the choice of weights profiles in cross-efficiency evaluations," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1564-1572, December.
    5. Wu, Jie & Chu, Junfei & Sun, Jiasen & Zhu, Qingyuan, 2016. "DEA cross-efficiency evaluation based on Pareto improvement," European Journal of Operational Research, Elsevier, vol. 248(2), pages 571-579.
    6. Wenli Liu & Ying-Ming Wang & Shulong Lv, 2017. "An aggressive game cross-efficiency evaluation in data envelopment analysis," Annals of Operations Research, Springer, vol. 259(1), pages 241-258, December.
    7. Davtalab-Olyaie, Mostafa & Asgharian, Masoud, 2021. "On Pareto-optimality in the cross-efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 288(1), pages 247-257.
    8. H. Örkcü & Mehmet Ünsal & Hasan Bal, 2015. "A modification of a mixed integer linear programming (MILP) model to avoid the computational complexity," Annals of Operations Research, Springer, vol. 235(1), pages 599-623, December.
    9. Yang, Feng & Ang, Sheng & Xia, Qiong & Yang, Chenchen, 2012. "Ranking DMUs by using interval DEA cross efficiency matrix with acceptability analysis," European Journal of Operational Research, Elsevier, vol. 223(2), pages 483-488.
    10. Oukil, Amar, 2020. "Exploiting value system multiplicity and preference voting for robust ranking," Omega, Elsevier, vol. 94(C).
    11. Rödder, W. & Reucher, E., 2011. "A consensual peer-based DEA-model with optimized cross-efficiencies - Input allocation instead of radial reduction," European Journal of Operational Research, Elsevier, vol. 212(1), pages 148-154, July.
    12. José L. Ruiz & Inmaculada Sirvent, 2017. "Fuzzy cross-efficiency evaluation: a possibility approach," Fuzzy Optimization and Decision Making, Springer, vol. 16(1), pages 111-126, March.
    13. Ebrahimi, Bohlool & Dhamotharan, Lalitha & Ghasemi, Mohammad Reza & Charles, Vincent, 2022. "A cross-inefficiency approach based on the deviation variables framework," Omega, Elsevier, vol. 111(C).
    14. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    15. Liu, Hui-hui & Song, Yao-yao & Yang, Guo-liang, 2019. "Cross-efficiency evaluation in data envelopment analysis based on prospect theory," European Journal of Operational Research, Elsevier, vol. 273(1), pages 364-375.
    16. Jie Wu & Junfei Chu & Qingyuan Zhu & Pengzhen Yin & Liang Liang, 2016. "DEA cross-efficiency evaluation based on satisfaction degree: an application to technology selection," International Journal of Production Research, Taylor & Francis Journals, vol. 54(20), pages 5990-6007, October.
    17. Ruiz, José L., 2013. "Cross-efficiency evaluation with directional distance functions," European Journal of Operational Research, Elsevier, vol. 228(1), pages 181-189.
    18. Feng Li & Han Wu & Qingyuan Zhu & Liang Liang & Gang Kou, 2021. "Data envelopment analysis cross efficiency evaluation with reciprocal behaviors," Annals of Operations Research, Springer, vol. 302(1), pages 173-210, July.
    19. Kairui Zuo & Jiancheng Guan, 2017. "Measuring the R&D efficiency of regions by a parallel DEA game model," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(1), pages 175-194, July.
    20. Rödder, W. & Reucher, E., 2012. "Advanced X-efficiencies for CCR- and BCC-models – towards Peer-based DEA controlling," European Journal of Operational Research, Elsevier, vol. 219(2), pages 467-476.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:39:y:2011:i:5:p:493-503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.