Abstract
While DEA has been proven an effective approach in identifying the best practice frontiers, its flexibility in weighting multiple inputs and outputs and its nature of self-evaluation have been criticized. The cross efficiency method is developed as a DEA extension to rank DMUs with the main idea being to use DEA to do peer evaluation, rather than in pure self-evaluation mode. Cross efficiency has been further investigated by Doyle and Green. There are mainly two advantages for cross-evaluation method. It provides an ordering among DMUs and it eliminates unrealistic weight schemes without requiring the elicitation of weight restrictions from application area experts.
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Zhu, J. (2014). DEA Cross Efficiency. In: Quantitative Models for Performance Evaluation and Benchmarking. International Series in Operations Research & Management Science, vol 213. Springer, Cham. https://doi.org/10.1007/978-3-319-06647-9_4
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DOI: https://doi.org/10.1007/978-3-319-06647-9_4
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