Cross-efficiency aggregation method considering bounded rationality: An application to healthcare service

Authors

Zhongcheng GUAN, Institute of Science and Development, Chinese Academy of Sciences, Beijing 100190, China School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049, ChinaFollow

Document Type

Research-Article

Author

Hao Pan, Guoliang Yang, Yuanyu Lou, Zhongcheng Guan

Journal Name

EURO Journal on Decision Processes

Keywords

Consensus, Healthcare service, Inequity aversion, Overconfidence, Tobit model

Abstract

The cross-efficiency evaluation method is a powerful tool for assessing efficiency. However, previous research has often overlooked the bounded rationality of decision makers (DMs), thereby neglecting key factors. To address this gap, we investigate the cross-efficiency weight aggregation method under bounded rationality. Firstly, we develop a utility function incorporating inequality aversion and overconfidence, integrating them into the cross-efficiency weight aggregation process to formulate the equity-minded cross-efficiency method. Secondly, building upon this method, we address consensus issues within evaluation groups by introducing a consensus compromise algorithm. This algorithm aims to reconcile group opinions based on the principles of the equity-minded cross-efficiency approach. Furthermore, we apply our model to evaluate healthcare service efficiency in China. Our analysis explores the impact of overconfidence and fairness preferences, using a Tobit regression model to examine factors influencing healthcare service efficiency. © 2025

http://doi.org/10.1016/j.ejdp.2025.100059

Recommended Citation

GUAN, Zhongcheng (2025) "Cross-efficiency aggregation method considering bounded rationality: An application to healthcare service," Double Helix Methodology: Vol. 6: Iss. 5, Article 1.
Available at: https://diis-mips.researchcommons.org/helix-content/vol6/iss5/1