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The use of OWA operator weights for cross-efficiency aggregation

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  • 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
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    References listed on IDEAS

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    1. repec:spr:soinre:v:136:y:2018:i:3:d:10.1007_s11205-016-1535-7 is not listed on IDEAS
    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. Oral, Muhittin & Oukil, Amar & Malouin, Jean-Louis & Kettani, Ossama, 2014. "The appreciative democratic voice of DEA: A case of faculty academic performance evaluation," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 20-28.
    4. Feng, Bo & Lai, Fujun, 2014. "Multi-attribute group decision making with aspirations: A case study," Omega, Elsevier, vol. 44(C), pages 136-147.
    5. Gong, Zaiwu & Xu, Xiaoxia & Zhang, Huanhuan & Aytun Ozturk, U. & Herrera-Viedma, Enrique & Xu, Chao, 2015. "The consensus models with interval preference opinions and their economic interpretation," Omega, Elsevier, vol. 55(C), pages 81-90.
    6. 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.
    7. Ghasemi, M.-R. & Ignatius, Joshua & Emrouznejad, Ali, 2014. "A bi-objective weighted model for improving the discrimination power in MCDEA," European Journal of Operational Research, Elsevier, vol. 233(3), pages 640-650.
    8. repec:bpj:jossai:v:3:y:2015:i:6:p:538-548:n:5 is not listed on IDEAS
    9. repec:spr:annopr:v:245:y:2016:i:1:d:10.1007_s10479-014-1657-8 is not listed on IDEAS
    10. repec:eee:jomega:v:75:y:2018:i:c:p:154-164 is not listed on IDEAS
    11. Mahdiloo, Mahdi & Saen, Reza Farzipoor & Lee, Ki-Hoon, 2015. "Technical, environmental and eco-efficiency measurement for supplier selection: An extension and application of data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 168(C), pages 279-289.
    12. repec:eee:jomega:v:74:y:2018:i:c:p:82-91 is not listed on IDEAS
    13. Yang, Guo-liang & Yang, Jian-bo & Liu, Wen-bin & Li, Xiao-xuan, 2013. "Cross-efficiency aggregation in DEA models using the evidential-reasoning approach," European Journal of Operational Research, Elsevier, vol. 231(2), pages 393-404.
    14. Ruiz, José L. & Sirvent, Inmaculada, 2012. "On the DEA total weight flexibility and the aggregation in cross-efficiency evaluations," European Journal of Operational Research, Elsevier, vol. 223(3), pages 732-738.

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