Determination of weights for ultimate cross efficiency using Shannon entropy

摘要

This paper firstly reviews the cross efficiency evaluation method which is an extension tool of data envelopment analysis (DEA), then we describe the main shortcomings when the ultimate average cross efficiency scores are used to evaluate and rank the decision making units (DMUs). In this paper, we eliminate the assumption of average and utilize the Shannon entropy to determine the weights for ultimate cross efficiency scores, and the procedures are introduced in detail. In the end, an empirical example is illustrated to examine the validity of the proposed method. Some future research directions are also pointed out.