Volume 54, Number 4, July-August 2020
|Page(s)||1215 - 1230|
|Published online||12 June 2020|
An optimistic-pessimistic DEA model based on game cross efficiency approach
Gazi University, Department of Mathematics, 06500 Ankara, Turkey
2 Gazi University, Department of Statistics, 06500 Ankara, Turkey
* Corresponding author: email@example.com
Accepted: 7 May 2019
The ranking of the decision making units (DMUs) is an essential problem in data envelopment analysis (DEA). Numerous approaches have been proposed for fully ranking of units. Majority of these methods consider DMUs with optimistic approach, whereas their weaknesses are ignored. In this study, for fully ranking of the units, a modified optimistic–pessimistic approach, which is based on game cross efficiency idea is proposed. The proposed game like iterative optimistic-pessimistic DEA procedure calculates the efficiency scores according to weaknesses and strengths of units and is based on non-cooperative game. This study extends the optimistic-pessimistic DEA approach to obtain robust rank values for DMUs. The proposed approach yields Nash equilibrium solution, thus overcomes the problem of non-uniqueness of the DEA optimal weights that can possibly reduce the usefulness of cross efficiency. Finally, in order to verify the validity of the proposed model and to show the practicability of algorithm, we apply a real-world example for selection of industrial R&D projects. The proposed model can increase the discriminating power of DMUs and can fully rank the DMUs.
Mathematics Subject Classification: 90C05 / 90C90 / 91A80
Key words: Optimistic-pessimistic DEA / game cross efficiency / fully ranking
© EDP Sciences, ROADEF, SMAI 2020
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