Gangless cross-evaluation in dea: An application to stock selection

Gholam R. Amin*, Amar Oukil

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)

Abstract

This paper discusses the impact of ganging decision making units (DMUs) on the crossefficiency evaluation in data envelopment analysis (DEA). A group of DMUs are said to be gangingtogether 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 crossefficiency 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.

Original languageEnglish
Pages (from-to)645-655
Number of pages11
JournalRAIRO - Operations Research
Volume53
Issue number2
DOIs
Publication statusPublished - 2019

Keywords

  • Cross-efficiency evaluation
  • Data envelopment analysis
  • Ganging decision making units
  • Gangless cross-evaluation
  • Stock selection

ASJC Scopus subject areas

  • Theoretical Computer Science
  • Computer Science Applications
  • Management Science and Operations Research

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