A prospect secondary goal model for ranking DMUs in DEA-R. (26th January 2023)

• Record Type: Journal Article
• Authors: Tohidnia, Simin; Tohidi, Ghasem
• Is Part Of: International journal of industrial and systems engineering. Volume 43:Number 2(2023)
• Page Start: 153
• Page End: 167
• Publication Date: 2023-01-26
• Subjects: data envelopment analysis -- DEA -- DEA-R -- secondary goal model -- prospect theory -- cross-efficiency; Systems engineering -- Periodicals; Industrial engineering -- Periodicals; 620.001171
• Languages: English
• ISSNs: 1748-5037

Abstract

This paper presents a prospect DEA-R model by combining the DEA-R model and prospect theory that can be used to evaluate DMUs in decision making under risk. In this study, the proposed model is used as a secondary goal model to determine a unique set of weights in the evaluation of DMUs by cross-efficiency method and thus the psychological behaviours of experts are incorporated in the evaluations. In fact, the present paper introduces an approach for ranking DMUs in DEA-R that can be useful in decision making under risk and especially for decision-makers who are familiar with ratio analysis. An empirical application also will be presented to illustrate the applicability of the proposed model.