Minimizing the Weights dispersion in Cross-Efficiency Measurement in data envelopment analysis

Subject Areas : International Journal of Data Envelopment Analysis

A. Amirteimoori ¹ , S. Kordrostami ²

1 - Department of Applied Mathematics, Islamic Azad University, Rasht, Iran
2 - Department of Applied Mathematics, Islamic Azad University, Lahidjan, Iran

Received: 2014-03-29 Accepted : 2014-03-29 Published : 2013-04-01

Keywords: Data Envelopment Analysis, Cross-efficiency, input/output weights,

Abstract :

Because of the piecewise linear nature of the data envelopment analysis (DEA) frontier, the optimal multipliers of the DEA models may not be unique. Choosing weights from alternative optimal solutions of dual multiplier models is one of the most frequently studied subjects in the context of DEA. In this paper, the authors have been inspired by the idea of Cooper et al. (2011) to propose a linear programming problem in which a specific decision making unit chooses the optimal solution of a linear program as the profile of weights for use in the cross-efficiency calculation. The approach proposed in this paper to determine input/output weights, prohibit the large differences in weights in cross efficiency evaluation. A real case on Chinese cities and special economic zones is given to illustrate the applicability of the proposed approach.