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Cross-efficiency aggregation method based on prospect consensus process

  • Lei Chen
  • Ying-Ming WangEmail author
  • Yan Huang
Original Research
  • 34 Downloads

Abstract

The arithmetic average method is usually adopted to aggregate cross-efficiency in traditional cross-efficiency methods. However, this method not only underestimates the importance of self-evaluation, but also ignores the subjective preference of decision-makers. This paper thus introduces prospect theory to describe the subjective preference of decision-makers in the aggregation process when they face gains and losses, then a new method is constructed to aggregate cross-efficiency. Based on the differences between the psychological expectations and aggregation results, the expectations are constantly adjusted until a consensus on aggregation results is reached. An aggregation result that is more acceptable to all decision-making units can then be obtained. Finally, the proposed method is applied to aggregate the cross-efficiency of 27 industrial robots to illustrate its effectiveness and convergence.

Keywords

Data envelopment analysis Efficiency aggregation Prospect theory Consensus process Convergence 

Notes

Acknowledgements

This research is supported by National Natural Science Foundation of China (#71801050; #71801048), and Social Science Planning Fund project of Fujian Province (#FJ2018C014, #FJ2017C033), Natural Science Foundation of Fujian Province (#2019J01637, #2019J01399).

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Decision Science Institute, School of Economics and ManagementFuzhou UniversityFuzhouChina
  2. 2.Key Laboratory of Spatial Data Mining and Information Sharing of Ministry of EducationFuzhou UniversityFuzhouChina
  3. 3.College of Computer and Information SciencesFujian Agriculture and Forestry UniversityFuzhouChina

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