DEA Cross-Efficiency Evaluation Method Based on Good Relationship

Abstract

AbstractBenevolent and aggressive cross-efficiency evaluation methods are the improvement of the cross-efficiency evaluation method. They merely maximize or minimize the efficiency of the composite unit constructed by evaluated decision-making units while maintaining the optimal efficiency of the decision-making unit under evaluation. The two methods completely ignore the self-evaluation efficiency of evaluated unit and the good relationship among decision-making units. To solve the above drawbacks, the authors consider the efficiency score of the decision-making unit as an interval number and propose a more reasonable interval number. On the basis of the interval efficiency, the authors provide the benevolent and aggressive DEA cross-efficiency evaluation models based on the good relationship among all decision-making units. Finally, a numerical example is provided to illustrate the proposed method.