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Minimax and maximin formulations of cross-efficiency in DEA

Authors
Lim, Sungmook
Issue Date
4월-2012
Publisher
PERGAMON-ELSEVIER SCIENCE LTD
Keywords
Data envelopment analysis; Efficiency; Cross-efficiency
Citation
COMPUTERS & INDUSTRIAL ENGINEERING, v.62, no.3, pp.726 - 731
Indexed
SCIE
SCOPUS
Journal Title
COMPUTERS & INDUSTRIAL ENGINEERING
Volume
62
Number
3
Start Page
726
End Page
731
URI
https://scholar.korea.ac.kr/handle/2021.sw.korea/108890
DOI
10.1016/j.cie.2011.11.010
ISSN
0360-8352
Abstract
In the conventional cross-efficiency formulation, the efficiency score of a DMU under evaluation is maximized as the primary goal while the average cross-efficiency of peer DMUs is minimized (or maximized) as the secondary goal. The proposed models replace the secondary goal with the minimization (or maximization) of the best (or worst) cross-efficiency of peer DMUs. We demonstrate the appropriateness of the proposed formulations of cross-efficiency for certain efficiency evaluation contexts, and show how they help enhance the usefulness of cross-efficiency evaluation in DEA using a randomly generated sample data set. For a solution method for the proposed models of cross-efficiency, we develop a bisection algorithm whose computational complexity is polynomial. (c) 2011 Elsevier Ltd. All rights reserved.
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