Efficiency and Cross-efficiency in DEA: Derivations, Meanings and Uses

  • John Doyle
  • Rodney Green
Theoretical Paper

Abstract

In this paper we examine a neglected aspect of Data Envelopment Analysis: cross-efficiency. We develop the concept of cross-efficiency in a number of new directions. We ground an intuitive understanding of cross-efficiency in the concept of peer-appraisal, as opposed to self-appraisal implied by simple efficiency, and discuss the relative merits of each. We also present mathematical formulations of, and intuitive meanings for three possible implementations of aggressive and benevolent cross-efficiency. We have implemented two of these formulations in computer programs; their performance is compared empirically on a real data set. Finally, we suggest practical uses for cross-efficiency, illustrated with reference to the same data set.

Keywords

data envelopment analysis linear programming comparative efficiency assessment cross-efficiency 

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Copyright information

© Operational Research Society 1994

Authors and Affiliations

  • John Doyle
    • 1
  • Rodney Green
    • 1
  1. 1.School of Management, University of Bath

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