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Entropy 2016, 18(10), 358; doi:10.3390/e18100358

Entropy Cross-Efficiency Model for Decision Making Units with Interval Data

1
School of Economics and Management, Southeast University, Nanjing 210096, China
2
School of Business, Applied Technology College of Soochow University, Suzhou 215012, China
3
School of Business, Soochow University, Suzhou 21500, China
*
Author to whom correspondence should be addressed.
Academic Editor: Kevin H. Knuth
Received: 10 August 2016 / Revised: 27 September 2016 / Accepted: 28 September 2016 / Published: 1 October 2016
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Abstract

The cross-efficiency method, as a Data Envelopment Analysis (DEA) extension, calculates the cross efficiency of each decision making unit (DMU) using the weights of all decision making units (DMUs). The major advantage of the cross-efficiency method is that it can provide a complete ranking for all DMUs. In addition, the cross-efficiency method could eliminate unrealistic weight results. However, the existing cross-efficiency methods only evaluate the relative efficiencies of a set of DMUs with exact values of inputs and outputs. If the input or output data of DMUs are imprecise, such as the interval data, the existing methods fail to assess the efficiencies of these DMUs. To address this issue, we propose the introduction of Shannon entropy into the cross-efficiency method. In the proposed model, intervals of all cross-efficiency values are firstly obtained by the interval cross-efficiency method. Then, a distance entropy model is proposed to obtain the weights of interval efficiency. Finally, all alternatives are ranked by their relative Euclidean distance from the positive solution. View Full-Text
Keywords: data envelopment analysis (DEA); cross-efficiency; entropy data envelopment analysis (DEA); cross-efficiency; entropy
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Wang, L.; Li, L.; Hong, N. Entropy Cross-Efficiency Model for Decision Making Units with Interval Data. Entropy 2016, 18, 358.

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