An improvement in DEA cross-efficiency aggregation based on the Shannon entropy

This paper improves a recently proposed Data Envelopment Analysis (DEA) cross-efficiency aggregation method based on the Shannon entropy. The weights for determining cross-efficiency are derived from minimizing the square distance of weighted cross-efficiency and weighted CCR efficiency. Our calculation example indicates that this method may produce inappropriate weights, which is significantly inconsistent with a widely accepted viewpoint. A variance coefficient method based on the Shannon entropy is presented to overcome the drawbacks of the DEA cross-efficiency aggregation method. In this study, comparisons of weights and cross-efficiency scores are provided.