A mathematical model involving inverse optimization theory and data envelopment analysis (DEA) as... more A mathematical model involving inverse optimization theory and data envelopment analysis (DEA) as an eciency measurement tool has recently been developed to handle the reallocation of resources in the context of Mergers & Acquisitions (Gattou et al. [8]). This paper highlights the practical importance of these concepts through an application in the farming sector, using a sample of 45 farms from the Batinah region, in the sultanate of Oman. Through a random selection of potential merging farms, the proposed InvDEA method is shown to enable not only reallocating resources but also reversing the merger’s decision if the contribution of one of the merging entities is found to be poor. In order to gauge the practical importance of the InvDEA model, its application scope can be expanded to other sectors, like banking, insurance, education, healthcare, etc.
This study is concerned with benchmarking the hotel industry in the Sultanate of Oman besides ide... more This study is concerned with benchmarking the hotel industry in the Sultanate of Oman besides identifying the environmental factors that influence the operational efficiency of hotels. The benchmarking analysis is carried out through data envelopment analysis (DEA), used essentially to evaluate the efficiency ratios of a selected sample of 58 hotels. Although less than 23% of the hotels are found efficient, the average efficiency score of 83% indicates a reasonable efficiency in resource management for most of the hotels. Regarding the contextual effects, hotel Size, Star rating and cultural attractions are found to have the most significant effect on hotel efficiency in Oman. The positive effect of cultural attractions can inform policy makers on the necessity to preserve and promote cultural heritage as an important key factor of attraction.
International Journal of Operational Research, 2019
In a merger, one important issue is the estimation of the levels of inputs and outputs required f... more In a merger, one important issue is the estimation of the levels of inputs and outputs required from each merging decision-making unit (DMU) so that the merged entity can realise a desired efficiency target. This paper uses the potential of inverse data envelopment analysis (InvDEA) to build a flexible target setting of the inputs and outputs. This study expands the application of the InvDEA methodology in a merger by introducing a flexible target setting that allows the decision maker to favour specific input in the target setting. We use a dataset of 30 universities to illustrate the practical scope of the proposed flexible target setting method, which can obviously be employed in any other merging context.
This paper discusses the impact of ganging decision making units (DMUs) on the cross-efficiency e... more This paper discusses the impact of ganging decision making units (DMUs) on the cross-efficiency evaluation in data envelopment analysis (DEA). A group of DMUs are said to be ganging-together if the minimum and the maximum cross-efficiency scores they give to all other DMUs are identical. This study demonstrates that the ganging phenomenon can significantly influence the cross-efficiency evaluation in favour of some DMUs. To overcome this shortcoming, we propose a gangless cross-efficiency evaluation approach. The suggested method reduces the effect of ganging and generates a more diversified list of top performing units. An application to the Tehran stock market is used to show the benefits of gangless cross-evaluation.
Data envelopment analysis (DEA) is one of the most powerful tools for ranking decision making uni... more Data envelopment analysis (DEA) is one of the most powerful tools for ranking decision making units (DMUs). In this paper, we present a new perspective for ranking DMUs under a DEA peer-evaluation framework. We exploit the property of multiple weighting schemes generated over the cross evaluation process in developing a methodology that yields not only robust ranking patterns but also more realistic sets of weights for the DMUs. The robustness of the proposed methodology is evaluated using OWA combinations involving different minimax disparity models and different levels of optimism of the decision maker. We show that discrimination is boosted at each stage of the decision process. As an illustration, our approach is applied for ranking a sample of baseball players.
The ranking of players has always been an important input for key decisions in the football indus... more The ranking of players has always been an important input for key decisions in the football industry. This paper introduces a systematic methodology for ranking football players through objective performance factors within a framework that integrates data envelopment analysis and ordered weighted averaging operators. Players from European Premier League Football clubs are selected and ranked under a decision setting that involves the players' desirable and undesirable performance factors alongside the attitude of the decision maker. The robustness of the proposed methodology is evaluated using different levels of optimism of the decision maker.
Journal of Hospitality and Tourism Management, 2016
This study is concerned with evaluating the performance of the hotel industry in the Sultanate of... more This study is concerned with evaluating the performance of the hotel industry in the Sultanate of Oman through a two-stage data envelopment analysis (DEA) procedure. In the first stage, DEA-bootstrap is used to estimate point and interval efficiency ratios of the hotels, identify the benchmark hotels and suggest a potential ranking. In the second stage, a truncated regression model based on the double bootstrapping procedure of Simar & Wilson (2007) is implemented to identify potential sources of hotels' operational inefficiency. In addition, an empirical approach is introduced to quantify the attractiveness of tourism destinations through a weighting scheme. The benchmarking analysis is carried out on a sample of 58 hotels, and revealed that (1) the majority of hotels in Oman are technically inefficient; (2) most of the efficient hotels are located in the capital, Muscat; (3) star rating and cultural attractions are the most important factors influencing hotels' efficiency. Practical implications of these findings are also discussed.
Journal of Hospitality and Tourism Management, 2016
This study is concerned with evaluating the performance of the hotel industry in the Sultanate of... more This study is concerned with evaluating the performance of the hotel industry in the Sultanate of Oman through a two-stage data envelopment analysis (DEA) procedure. In the first stage, DEA-bootstrap is used to estimate point and interval efficiency ratios of the hotels, identify the benchmark hotels and suggest a potential ranking. In the second stage, a truncated regression model based on the double bootstrapping procedure of Simar & Wilson (2007) is implemented to identify potential sources of hotels' operational inefficiency. In addition, an empirical approach is introduced to quantify the attractiveness of tourism destinations through a weighting scheme. The benchmarking analysis is carried out on a sample of 58 hotels, and revealed that (1) the majority of hotels in Oman are technically inefficient; (2) most of the efficient hotels are located in the capital, Muscat; (3) star rating and cultural attractions are the most important factors influencing hotels' efficiency. Practical implications of these findings are also discussed.
Ranking decision making units (DMUs) is one of the most important applications of data envelopmen... more Ranking decision making units (DMUs) is one of the most important applications of data envelopment analysis (DEA). In this paper, we exploit the power of individual appreciativeness in developing a methodology that combines crossevaluation, preference voting and ordered weighted averaging (OWA). We show that each stage of the proposed methodology enhances discrimination among DMUs while offering more flexibility to the decision process. Our approach is illustrated through an example involving 15 baseball players.
Ranking decision making units (DMUs) is one of the most important applications of data envelopmen... more Ranking decision making units (DMUs) is one of the most important applications of data envelopment analysis (DEA). In this paper, we exploit the power of individual appreciativeness in developing a methodology that combines crossevaluation, preference voting and ordered weighted averaging (OWA). We show that each stage of the proposed methodology enhances discrimination among DMUs while offering more flexibility to the decision process. Our approach is illustrated through an example involving 15 baseball players.
The International Journal of Advanced Manufacturing Technology, 2014
Prioritizing and ranking products' defects are important decision-making problems in many manufac... more Prioritizing and ranking products' defects are important decision-making problems in many manufacturing sectors. This paper proposes a methodology for ranking defects based on the ordered weighted averaging (OWA) operator. The power of the proposed approach stems from its ability to rank defects with no restriction on the application context and no limitation on the number and type of variables used. Using a case study from the textile manufacturing industry, three OWA weights generating models have been implemented and it is shown that the OWA-based ranking approach is technically robust and practically flexible as a support for decision-making.
Several very effective exact algorithms have been developed for vehicle routing problems with tim... more Several very effective exact algorithms have been developed for vehicle routing problems with time windows. Unfortunately, most of these algorithms cannot be applied to instances that are defined on road networks, because they implicitly assume that the cheapest path between two customers is equal to the quickest path. Garaix and coauthors proposed to tackle this issue by first storing alternative paths in an auxiliary multi-graph, and then using that multi-graph within a branch-and-price algorithm. We show that, if one works with the original road network rather than the multi-graph, then one can solve the pricing subproblem more quickly, in both theory and practice.
The occurrence of multiple optimal solutions is an important and interesting issue in data envelo... more The occurrence of multiple optimal solutions is an important and interesting issue in data envelopment analysis (DEA), for it allows flexibility to estimate the optimal cross-efficiencies of all decision making units (DMUs). This paper uses the advantage of multiple optimal solutions, be in the cases of efficient and/or inefficient DMUs, to integrate both the first and second-order voices of all DMUs and proposes a most appreciative cross-efficiency DEA method. The paper deals with multiple optimal solution cases within the context of crossefficiency models and suggest a model that is most appreciative for all DMUs being cross-evaluated by all others. The merits and appreciative superiority of the proposed method is proven theoretically; and illustrated practically through a ranking study chosen from the literature.
In this study, we use a three-stage analytical framework to analyse the productive efficiency of ... more In this study, we use a three-stage analytical framework to analyse the productive efficiency of farms in the Batinah region. Data envelopment analysis (DEA) is employed to estimate the efficiency of the farms, together with a Tobit regression model and a production function to explain the variations in efficiency. The data used in this work are based on a survey of 60 randomly selected farm households. The results of the DEA stage showed an average technical efficiency of 0.42 for the sample farms, ranging from 0.12 to 1.00. At a subsequent stage, the efficiency scores were regressed on a set of selected contextual variables to identify possible sources of inefficiency. Tobit estimation failed to achieve statistical significance allowing a clear discrimination of the sources of inefficiency. A Cobb-Douglas production function was assumed, and analysis of the results helped to identify the specific operating factors affecting the variations in farming efficiency.
ABSTRACT Data envelopment analysis (DEA) is in fact more than just being an instrument for measur... more ABSTRACT Data envelopment analysis (DEA) is in fact more than just being an instrument for measuring the relative efficiencies of a group of decision making units (DMU). DEA models are also means of expressing appreciative democratic voices of DMUs. This paper proposes a methodology for allocating premium points to a group of professors using three models sequentially: (1) a DEA model for appreciative academic self-evaluation, (2) a DEA model for appreciative academic cross-evaluation, and (3) a Non-DEA model for academic rating of professors for the purpose of premium allocations. The premium results, called DEA results, are then compared with the premium points “nurtured” by the Dean, called N bonus points. After comparing DEA results and N bonus points, the Dean reassessed his initial bonus points and provided new ones – called DEA-N decisions. The experience indicates that judgmental decisions (Dean's evaluations) can be enhanced by making use of formal models (DEA and Non-DEA models). Moreover, the appreciative and democratic voices of professors are virtually embedded in the DEA models.
Transportation is a sector which plays an important role in the process of development of countri... more Transportation is a sector which plays an important role in the process of development of countries around the world. A crucial step in transportation planning process is the measure of the efficiency of transportation systems in order to guarantee the desired service. This paper investigates the relative efficiencies of lines of the main public transportation company Dakar Dem Dikk (DDD)\footnote{\textit{Dem Dikk} meaning \guillemotleft Go-Return\guillemotright} in Dakar (Senegal). The objective is to apply Data Envelopment Analysis (DEA) and bootstrapping approaches in order to identify opportunities for improvement. In this study, we examine technical efficiency for the 24 lines of DDD using Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) DEA output oriented models. We apply bootstrap approach for bias correction and for confidence intervals creation of our estimates. Finally, we examine the returns to scale characterization of lines. The results establish tha...
In this paper, we develop a two-stage analytical framework to investigate farming efficiency. In ... more In this paper, we develop a two-stage analytical framework to investigate farming efficiency. In the first stage, data envelopment analysis (DEA) is employed to estimate the efficiency of the farms and conduct slack and scale economies analyses. In the second stage, we propose a stochastic model to identify potential sources of inefficiency. The later model integrates within a unified structure all variables, including inputs, outputs and contextual factors. As an application ground, we use a sample of 60 farms from the Batinah coastal region, an agricultural area representing more than 53% of the total cropped area of Oman. The findings of the study lay emphasis on the interdependence of groundwater salinity, irrigation technology and farm’s operational efficiency, with as a key recommendation the necessity for more regulated water consumption and a readjustment of the government’s subsidiary policies.
In a context of global economy, addressing SMEs’ performance within a local framework appears rat... more In a context of global economy, addressing SMEs’ performance within a local framework appears rather a naïve approach. The key drawback of such an approach stems from its restriction to socio-economic factors that might lead to biased decisions regarding potential venues for performance improvement. In practice, the key objective of performance analysis consists in identifying benchmarks for best managerial practices with respect to resource allocation as well as production level setting. Conducting the analysis within a specific country, let it be a developing country, may be misleading. Although, the best of the class (benchmark) can be a valid reference for its peers within the same class, its status might not be preserved if the analysis is projected outside the borders of the class. Indeed, the likelihood for outperformance is high. In order to set targets for global competition, decision makers ought to look at the concept of performance from a broader geographical perspective...
A mathematical model involving inverse optimization theory and data envelopment analysis (DEA) as... more A mathematical model involving inverse optimization theory and data envelopment analysis (DEA) as an eciency measurement tool has recently been developed to handle the reallocation of resources in the context of Mergers & Acquisitions (Gattou et al. [8]). This paper highlights the practical importance of these concepts through an application in the farming sector, using a sample of 45 farms from the Batinah region, in the sultanate of Oman. Through a random selection of potential merging farms, the proposed InvDEA method is shown to enable not only reallocating resources but also reversing the merger’s decision if the contribution of one of the merging entities is found to be poor. In order to gauge the practical importance of the InvDEA model, its application scope can be expanded to other sectors, like banking, insurance, education, healthcare, etc.
This study is concerned with benchmarking the hotel industry in the Sultanate of Oman besides ide... more This study is concerned with benchmarking the hotel industry in the Sultanate of Oman besides identifying the environmental factors that influence the operational efficiency of hotels. The benchmarking analysis is carried out through data envelopment analysis (DEA), used essentially to evaluate the efficiency ratios of a selected sample of 58 hotels. Although less than 23% of the hotels are found efficient, the average efficiency score of 83% indicates a reasonable efficiency in resource management for most of the hotels. Regarding the contextual effects, hotel Size, Star rating and cultural attractions are found to have the most significant effect on hotel efficiency in Oman. The positive effect of cultural attractions can inform policy makers on the necessity to preserve and promote cultural heritage as an important key factor of attraction.
International Journal of Operational Research, 2019
In a merger, one important issue is the estimation of the levels of inputs and outputs required f... more In a merger, one important issue is the estimation of the levels of inputs and outputs required from each merging decision-making unit (DMU) so that the merged entity can realise a desired efficiency target. This paper uses the potential of inverse data envelopment analysis (InvDEA) to build a flexible target setting of the inputs and outputs. This study expands the application of the InvDEA methodology in a merger by introducing a flexible target setting that allows the decision maker to favour specific input in the target setting. We use a dataset of 30 universities to illustrate the practical scope of the proposed flexible target setting method, which can obviously be employed in any other merging context.
This paper discusses the impact of ganging decision making units (DMUs) on the cross-efficiency e... more This paper discusses the impact of ganging decision making units (DMUs) on the cross-efficiency evaluation in data envelopment analysis (DEA). A group of DMUs are said to be ganging-together if the minimum and the maximum cross-efficiency scores they give to all other DMUs are identical. This study demonstrates that the ganging phenomenon can significantly influence the cross-efficiency evaluation in favour of some DMUs. To overcome this shortcoming, we propose a gangless cross-efficiency evaluation approach. The suggested method reduces the effect of ganging and generates a more diversified list of top performing units. An application to the Tehran stock market is used to show the benefits of gangless cross-evaluation.
Data envelopment analysis (DEA) is one of the most powerful tools for ranking decision making uni... more Data envelopment analysis (DEA) is one of the most powerful tools for ranking decision making units (DMUs). In this paper, we present a new perspective for ranking DMUs under a DEA peer-evaluation framework. We exploit the property of multiple weighting schemes generated over the cross evaluation process in developing a methodology that yields not only robust ranking patterns but also more realistic sets of weights for the DMUs. The robustness of the proposed methodology is evaluated using OWA combinations involving different minimax disparity models and different levels of optimism of the decision maker. We show that discrimination is boosted at each stage of the decision process. As an illustration, our approach is applied for ranking a sample of baseball players.
The ranking of players has always been an important input for key decisions in the football indus... more The ranking of players has always been an important input for key decisions in the football industry. This paper introduces a systematic methodology for ranking football players through objective performance factors within a framework that integrates data envelopment analysis and ordered weighted averaging operators. Players from European Premier League Football clubs are selected and ranked under a decision setting that involves the players' desirable and undesirable performance factors alongside the attitude of the decision maker. The robustness of the proposed methodology is evaluated using different levels of optimism of the decision maker.
Journal of Hospitality and Tourism Management, 2016
This study is concerned with evaluating the performance of the hotel industry in the Sultanate of... more This study is concerned with evaluating the performance of the hotel industry in the Sultanate of Oman through a two-stage data envelopment analysis (DEA) procedure. In the first stage, DEA-bootstrap is used to estimate point and interval efficiency ratios of the hotels, identify the benchmark hotels and suggest a potential ranking. In the second stage, a truncated regression model based on the double bootstrapping procedure of Simar & Wilson (2007) is implemented to identify potential sources of hotels' operational inefficiency. In addition, an empirical approach is introduced to quantify the attractiveness of tourism destinations through a weighting scheme. The benchmarking analysis is carried out on a sample of 58 hotels, and revealed that (1) the majority of hotels in Oman are technically inefficient; (2) most of the efficient hotels are located in the capital, Muscat; (3) star rating and cultural attractions are the most important factors influencing hotels' efficiency. Practical implications of these findings are also discussed.
Journal of Hospitality and Tourism Management, 2016
This study is concerned with evaluating the performance of the hotel industry in the Sultanate of... more This study is concerned with evaluating the performance of the hotel industry in the Sultanate of Oman through a two-stage data envelopment analysis (DEA) procedure. In the first stage, DEA-bootstrap is used to estimate point and interval efficiency ratios of the hotels, identify the benchmark hotels and suggest a potential ranking. In the second stage, a truncated regression model based on the double bootstrapping procedure of Simar & Wilson (2007) is implemented to identify potential sources of hotels' operational inefficiency. In addition, an empirical approach is introduced to quantify the attractiveness of tourism destinations through a weighting scheme. The benchmarking analysis is carried out on a sample of 58 hotels, and revealed that (1) the majority of hotels in Oman are technically inefficient; (2) most of the efficient hotels are located in the capital, Muscat; (3) star rating and cultural attractions are the most important factors influencing hotels' efficiency. Practical implications of these findings are also discussed.
Ranking decision making units (DMUs) is one of the most important applications of data envelopmen... more Ranking decision making units (DMUs) is one of the most important applications of data envelopment analysis (DEA). In this paper, we exploit the power of individual appreciativeness in developing a methodology that combines crossevaluation, preference voting and ordered weighted averaging (OWA). We show that each stage of the proposed methodology enhances discrimination among DMUs while offering more flexibility to the decision process. Our approach is illustrated through an example involving 15 baseball players.
Ranking decision making units (DMUs) is one of the most important applications of data envelopmen... more Ranking decision making units (DMUs) is one of the most important applications of data envelopment analysis (DEA). In this paper, we exploit the power of individual appreciativeness in developing a methodology that combines crossevaluation, preference voting and ordered weighted averaging (OWA). We show that each stage of the proposed methodology enhances discrimination among DMUs while offering more flexibility to the decision process. Our approach is illustrated through an example involving 15 baseball players.
The International Journal of Advanced Manufacturing Technology, 2014
Prioritizing and ranking products' defects are important decision-making problems in many manufac... more Prioritizing and ranking products' defects are important decision-making problems in many manufacturing sectors. This paper proposes a methodology for ranking defects based on the ordered weighted averaging (OWA) operator. The power of the proposed approach stems from its ability to rank defects with no restriction on the application context and no limitation on the number and type of variables used. Using a case study from the textile manufacturing industry, three OWA weights generating models have been implemented and it is shown that the OWA-based ranking approach is technically robust and practically flexible as a support for decision-making.
Several very effective exact algorithms have been developed for vehicle routing problems with tim... more Several very effective exact algorithms have been developed for vehicle routing problems with time windows. Unfortunately, most of these algorithms cannot be applied to instances that are defined on road networks, because they implicitly assume that the cheapest path between two customers is equal to the quickest path. Garaix and coauthors proposed to tackle this issue by first storing alternative paths in an auxiliary multi-graph, and then using that multi-graph within a branch-and-price algorithm. We show that, if one works with the original road network rather than the multi-graph, then one can solve the pricing subproblem more quickly, in both theory and practice.
The occurrence of multiple optimal solutions is an important and interesting issue in data envelo... more The occurrence of multiple optimal solutions is an important and interesting issue in data envelopment analysis (DEA), for it allows flexibility to estimate the optimal cross-efficiencies of all decision making units (DMUs). This paper uses the advantage of multiple optimal solutions, be in the cases of efficient and/or inefficient DMUs, to integrate both the first and second-order voices of all DMUs and proposes a most appreciative cross-efficiency DEA method. The paper deals with multiple optimal solution cases within the context of crossefficiency models and suggest a model that is most appreciative for all DMUs being cross-evaluated by all others. The merits and appreciative superiority of the proposed method is proven theoretically; and illustrated practically through a ranking study chosen from the literature.
In this study, we use a three-stage analytical framework to analyse the productive efficiency of ... more In this study, we use a three-stage analytical framework to analyse the productive efficiency of farms in the Batinah region. Data envelopment analysis (DEA) is employed to estimate the efficiency of the farms, together with a Tobit regression model and a production function to explain the variations in efficiency. The data used in this work are based on a survey of 60 randomly selected farm households. The results of the DEA stage showed an average technical efficiency of 0.42 for the sample farms, ranging from 0.12 to 1.00. At a subsequent stage, the efficiency scores were regressed on a set of selected contextual variables to identify possible sources of inefficiency. Tobit estimation failed to achieve statistical significance allowing a clear discrimination of the sources of inefficiency. A Cobb-Douglas production function was assumed, and analysis of the results helped to identify the specific operating factors affecting the variations in farming efficiency.
ABSTRACT Data envelopment analysis (DEA) is in fact more than just being an instrument for measur... more ABSTRACT Data envelopment analysis (DEA) is in fact more than just being an instrument for measuring the relative efficiencies of a group of decision making units (DMU). DEA models are also means of expressing appreciative democratic voices of DMUs. This paper proposes a methodology for allocating premium points to a group of professors using three models sequentially: (1) a DEA model for appreciative academic self-evaluation, (2) a DEA model for appreciative academic cross-evaluation, and (3) a Non-DEA model for academic rating of professors for the purpose of premium allocations. The premium results, called DEA results, are then compared with the premium points “nurtured” by the Dean, called N bonus points. After comparing DEA results and N bonus points, the Dean reassessed his initial bonus points and provided new ones – called DEA-N decisions. The experience indicates that judgmental decisions (Dean's evaluations) can be enhanced by making use of formal models (DEA and Non-DEA models). Moreover, the appreciative and democratic voices of professors are virtually embedded in the DEA models.
Transportation is a sector which plays an important role in the process of development of countri... more Transportation is a sector which plays an important role in the process of development of countries around the world. A crucial step in transportation planning process is the measure of the efficiency of transportation systems in order to guarantee the desired service. This paper investigates the relative efficiencies of lines of the main public transportation company Dakar Dem Dikk (DDD)\footnote{\textit{Dem Dikk} meaning \guillemotleft Go-Return\guillemotright} in Dakar (Senegal). The objective is to apply Data Envelopment Analysis (DEA) and bootstrapping approaches in order to identify opportunities for improvement. In this study, we examine technical efficiency for the 24 lines of DDD using Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) DEA output oriented models. We apply bootstrap approach for bias correction and for confidence intervals creation of our estimates. Finally, we examine the returns to scale characterization of lines. The results establish tha...
In this paper, we develop a two-stage analytical framework to investigate farming efficiency. In ... more In this paper, we develop a two-stage analytical framework to investigate farming efficiency. In the first stage, data envelopment analysis (DEA) is employed to estimate the efficiency of the farms and conduct slack and scale economies analyses. In the second stage, we propose a stochastic model to identify potential sources of inefficiency. The later model integrates within a unified structure all variables, including inputs, outputs and contextual factors. As an application ground, we use a sample of 60 farms from the Batinah coastal region, an agricultural area representing more than 53% of the total cropped area of Oman. The findings of the study lay emphasis on the interdependence of groundwater salinity, irrigation technology and farm’s operational efficiency, with as a key recommendation the necessity for more regulated water consumption and a readjustment of the government’s subsidiary policies.
In a context of global economy, addressing SMEs’ performance within a local framework appears rat... more In a context of global economy, addressing SMEs’ performance within a local framework appears rather a naïve approach. The key drawback of such an approach stems from its restriction to socio-economic factors that might lead to biased decisions regarding potential venues for performance improvement. In practice, the key objective of performance analysis consists in identifying benchmarks for best managerial practices with respect to resource allocation as well as production level setting. Conducting the analysis within a specific country, let it be a developing country, may be misleading. Although, the best of the class (benchmark) can be a valid reference for its peers within the same class, its status might not be preserved if the analysis is projected outside the borders of the class. Indeed, the likelihood for outperformance is high. In order to set targets for global competition, decision makers ought to look at the concept of performance from a broader geographical perspective...
This paper discusses the impact of ganging decision making units (DMUs) on the cross-efficiency e... more This paper discusses the impact of ganging decision making units (DMUs) on the cross-efficiency evaluation in data envelopment analysis (DEA). A group of DMUs are said to be ganging-together if the minimum and the maximum cross-efficiency scores they give to all other DMUs are identical. This study demonstrates that the ganging phenomenon can significantly influence the cross-efficiency evaluation in favour of some DMUs. To overcome this shortcoming, we propose a gangless cross-efficiency evaluation approach. The suggested method reduces the effect of ganging and generates a more diversified list of top performing units. An application to the Tehran stock market is used to show the benefits of gangless cross-evaluation.
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