Selecting an alternative secondary goals in DEA crossefficiency evaluation by using a voting model

As an extension to data envelopment analysis (DEA), cross-efficiency evaluation not only provides a ranking among the decision-making units (DMUs) but also eliminates unrealistic DEA weighting schemes without requiring a priori information on weight restrictions. A factor that possibly reduces the usefulness of the cross-efficiency evaluation method is that the cross efficiency scores may not be unique due to the presence of alternate optima. As a result, it is recommended that secondary goals be introduced in cross-efficiency evaluation. Liang, Wu, Cook, and Zhu [Liang, L., Wu, J., Cook, W. D., & Zhu, J; (2008); Alternative secondary goals in DEA cross-efficiency evaluation; International Journal of Production Economics, 113, 1025– 1030] provided three models by introducing various secondary objective functions which are linear or can be transformed into linear programming. In this paper, we introduce a method to select the best of them as a secondary goal by using a voting model.

Keywords:

Data envelopment analysis (DEA) , Cross-efficiency , Preference voting