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Journal of Applied Mathematics
Volume 2014, Article ID 453749, 7 pages
http://dx.doi.org/10.1155/2014/453749
Research Article

Gap Minimization for Peer-Evaluation in DEA Cross-Efficiency

1School of Management, Huazhong University of Science and Technology, 1037 Luoyu Road, Hongshan District, Wuhan 430074, China
2Wisconsin School of Business, University of Wisconsin-Madison, Madison, WI 53706, USA

Received 28 February 2014; Revised 19 July 2014; Accepted 20 July 2014; Published 6 August 2014

Academic Editor: Farhad Hosseinzadeh Lotfi

Copyright © 2014 Anrong Yang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Cross-efficiency evaluation is an effective and widely used method for ranking decision making units (DMUs) in data envelopment analysis (DEA). Gap minimization criterion is introduced in aggressive and benevolent cross-efficiency methods to avoid possible extreme efficiency from peer-evaluation and to get equitable results. On the basis of this criterion, a weighted cross-efficiency method with similarity distance that, respectively, considers the aggressive and the benevolent formulations is proposed to determine cross-efficiency. The weights of the cross-evaluation determined by this method are positively influenced by self-evaluation and thus are propitious to resolving conflict. Numerical demonstration reveals the feasibility of the proposed method.