Cross-efficiency Evaluation under the Principle of Rank Priority of DMUs

Cross-efficiency evaluation has been suggested as an alternative method of efficiency evaluation and ranking in Data Envelopment Analysis (DEA) based on peer evaluation logic. A factor that possibly reduces the usefulness of the cross-efficiency evaluation is that cross-efficiency scores may not be unique due to the presence of alternative optima. As a result, it is recommended that secondary goals should be introduced in cross-efficiency evaluation. This paper seeks to improve the secondary goal proposed by Wu et al . (2009) (Determination of cross efficiency under the principle of rank priority in cross evaluation, Expert Systems with Applications, 36, 4826-4829), by introducing a Mixed Integer Linear Problem (MILP) as secondary objective function. Numerical example is provided to illustrate the model.

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