Title: A prospect secondary goal model for ranking DMUs in DEA-R

Authors: Simin Tohidnia; Ghasem Tohidi

Addresses: Department of Mathematics, Islamic Azad University, Central Tehran Branch, Tehran, Iran ' Department of Mathematics, Islamic Azad University, Central Tehran Branch, Tehran, Iran

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.

Keywords: data envelopment analysis; DEA; DEA-R; secondary goal model; prospect theory; cross-efficiency.

DOI: 10.1504/IJISE.2023.128665

International Journal of Industrial and Systems Engineering, 2023 Vol.43 No.2, pp.153 - 167

Received: 08 Jul 2020
Accepted: 08 Mar 2021
Published online: 01 Feb 2023 *

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