Weight determination in the cross-efficiency evaluation

A neutral data envelopment analysis (DEA) model for cross-efficiency evaluation was recently proposed by Wang and Chin [Wang and Chin (2010b). A neutral DEA model for cross-efficiency evaluation and its extension. Expert Systems with Applications, 37(5), 3666–3675], which maximinimizes the relative efficiency of each output and effectively reduces the number of zero weights of outputs. Since a large number of zero weights may still exist among inputs, this paper proposes a simultaneously input- and output-oriented weight determination DEA model for the cross-efficiency evaluation. The new DEA model proves to reduce the number of zero weights for both inputs and outputs very significantly, as illustrated by numerical examples. The weights determined by the new DEA model are neutral, neither aggressive nor benevolent.

Research highlights
► The weights determined by existing cross-efficiency evaluation models often involve too many zeros.
► We propose a simultaneously input- and output-oriented DEA model for weight determination in cross-efficiency evaluation.
► The new DEA model can reduce the number of zero weights of both inputs and outputs very significantly.
► The weights determined by the new DEA model are neutral, neither aggressive nor benevolent.