A subgroup dominance-based benefit of the doubt method for addressing rank reversals: A case study of the human development index in Europe

The benefit of the doubt (BoD) is a non-parametric weighting method that aims to maximize the relative composite indicator value of each decision-making unit (DMU). A well-known issue of BoD-based ranking of DMUs is the rank reversal problem when DMUs are deleted or added. The fundamental reason for rank reversals is that deleting (or adding) a DMU influences the generated weight by changing the frontier surface. To address the rank reversal problem, this paper proposes a subgroup dominance-based BoD model (SD-BoD). Based on the individual weights obtained from a classic BoD model, a dominance-based pairwise comparison mechanism is put forward to ensure comparability of different DMUs. Moreover, motivated by the data envelopment analysis idea, we construct a sequential frontier surface partition technique and establish a DMU ranking framework based on subgroup dominance, which helps reduce weight variation due to DMU addition or deletion. Finally, the effectiveness of the SD-BoD method is illustrated by comparing and analyzing the Human Development Indices of the 28 European regions.(c) 2022 Elsevier B.V. All rights reserved.

Automated summary

The benefit of the doubt (BoD) is a non-parametric weighting method that maximizes the relative composite indicator value of each decision-making unit (DMU). However, a well-known issue with BoD is the rank reversal problem when DMUs are deleted or added. To address this problem, this paper proposes a subgroup dominance-based BoD model (SD-BoD) which includes a dominance-based pairwise comparison mechanism and a sequential frontier surface partition technique. The effectiveness of the SD-BoD method is illustrated through a comparison and analysis of the Human Development Indices of European regions.