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Gap Minimization for Peer-Evaluation in DEA Cross-Efficiency

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  • Anrong Yang
  • Zigang Zhang
  • Yishi Zhang
  • Dunliang Chen

Abstract

Cross-efficiency evaluation is an effective and widely used method for ranking decision making units (DMUs) in data envelopment analysis (DEA). Gap minimization criterion is introduced in aggressive and benevolent cross-efficiency methods to avoid possible extreme efficiency from peer-evaluation and to get equitable results. On the basis of this criterion, a weighted cross-efficiency method with similarity distance that, respectively, considers the aggressive and the benevolent formulations is proposed to determine cross-efficiency. The weights of the cross-evaluation determined by this method are positively influenced by self-evaluation and thus are propitious to resolving conflict. Numerical demonstration reveals the feasibility of the proposed method.

Suggested Citation

  • Anrong Yang & Zigang Zhang & Yishi Zhang & Dunliang Chen, 2014. "Gap Minimization for Peer-Evaluation in DEA Cross-Efficiency," Journal of Applied Mathematics, Hindawi, vol. 2014, pages 1-7, August.
    • Handle: RePEc:hin:jnljam:453749
    DOI: 10.1155/2014/453749
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