Original scientific paper

Measuring DMU-efficiency by modified cross-efficiency approach

Lavoslav Čaklović ; Department of Mathematics, University of Zagreb, Zagreb, Croatia
Tihomir Hunjak ; Faculty of Organization and Informatics, Varaždin, Croatia

Abstract

A fundamental weakness of the Data Envelopment Analysis (DEA) is its weak discrimination in cases when a small number of decision making units are compared. Therefore, in such cases the basic DEA model (optimistic and pessimistic) is used in combination with other methods or additional constraints are added to the model. In this paper, the cross-efficiency method was combined with a self-ranking procedure which uses the Potential Method (PM). The results are similar to those of Wang and others [15] based on the Geometric Mean (GM). Another interesting result is that a preorder "domination by inputs'' and ordinal ranking derived from it produce results very close to those obtained by GM and PM.

Keywords

multi-criteria decision making; DEA; cross-efficiency; potential method; self-ranking

Hrčak ID:

93291

URI

https://hrcak.srce.hr/93291

Publication date:

5.12.2012.

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