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The neutral data envelopment analysis (DEA) model is an alternative way to determine the weights in DEA cross-efficiency evaluation, while avoiding the difficulty in making a choice between the aggressive and benevolent formulations. However, the weights determined by the neutral model merely make the efficiency of part output bigger than other sets of weights. The neutral model is not able to make the efficiency of each output of the DMU biggest among the favorable weights. This neutral model is not purely “neutral” and not most favorable to the DMU. We proposed a revised model for the neutral model. Based on the idea that the DMU should choose a set of weights to maximize its own efficiency, this paper proposes a new cross-efficiency model. The weights determined by the two models are neutral, neither aggressive nor benevolent.

A Revised Model of the Neutral DEA Model and Its Extension