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Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy

Cross-efficiency evaluation is an effective approach for ranking decision-making units (DMUs), and there exist different perspectives from different cross-efficiency evaluation models. However, efficiency ranking results derived from cross-efficiency models may not be the same, and these models may...

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Autor principal: Lee, Yueh-Chiang
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2019
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7514956/
https://www.ncbi.nlm.nih.gov/pubmed/33267181
http://dx.doi.org/10.3390/e21050467
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author Lee, Yueh-Chiang
author_facet Lee, Yueh-Chiang
author_sort Lee, Yueh-Chiang
collection PubMed
description Cross-efficiency evaluation is an effective approach for ranking decision-making units (DMUs), and there exist different perspectives from different cross-efficiency evaluation models. However, efficiency ranking results derived from cross-efficiency models may not be the same, and these models may provide some precious information that we cannot ignore. In this case, it may not be easy for one to decide which method should be used in some underlying assumptions, and we need several cross-efficiency evaluation models to measure simultaneously the cross-efficiency scores of DMUs. Hence, combining different viewpoints for ranking DMUs is a possible way to apply cross-efficiency evaluation. Since Shannon’s entropy is an effective tool to measure uncertainty, in this study we adopt the idea of Shannon’s entropy to combine cross-efficiency scores, which are obtained from different evaluation models, for comparison of DMUs. An example of commercial banks in Taiwan is used to illustrate the idea proposed in this paper.
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spelling pubmed-75149562020-11-09 Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy Lee, Yueh-Chiang Entropy (Basel) Article Cross-efficiency evaluation is an effective approach for ranking decision-making units (DMUs), and there exist different perspectives from different cross-efficiency evaluation models. However, efficiency ranking results derived from cross-efficiency models may not be the same, and these models may provide some precious information that we cannot ignore. In this case, it may not be easy for one to decide which method should be used in some underlying assumptions, and we need several cross-efficiency evaluation models to measure simultaneously the cross-efficiency scores of DMUs. Hence, combining different viewpoints for ranking DMUs is a possible way to apply cross-efficiency evaluation. Since Shannon’s entropy is an effective tool to measure uncertainty, in this study we adopt the idea of Shannon’s entropy to combine cross-efficiency scores, which are obtained from different evaluation models, for comparison of DMUs. An example of commercial banks in Taiwan is used to illustrate the idea proposed in this paper. MDPI 2019-05-04 /pmc/articles/PMC7514956/ /pubmed/33267181 http://dx.doi.org/10.3390/e21050467 Text en © 2019 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
spellingShingle Article
Lee, Yueh-Chiang
Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy
title Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy
title_full Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy
title_fullStr Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy
title_full_unstemmed Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy
title_short Ranking DMUs by Combining Cross-Efficiency Scores Based on Shannon’s Entropy
title_sort ranking dmus by combining cross-efficiency scores based on shannon’s entropy
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7514956/
https://www.ncbi.nlm.nih.gov/pubmed/33267181
http://dx.doi.org/10.3390/e21050467
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