Title
A bargaining game model for measuring performance of two-stage network structures
Abstract
Data envelopment analysis (DEA) is a method for measuring the efficiency of peer decision making units (DMUs), where the internal structures of DMUs are treated as a black-box. Recently DEA has been extended to examine the efficiency of DMUs that have two-stage network structures or processes, where all the outputs from the first stage are intermediate measures that make up the inputs to the second stage. The resulting two-stage DEA model not only provides an overall efficiency score for the entire process, but also yields an efficiency score for each of the individual stages. The current paper develops a Nash bargaining game model to measure the performance of DMUs that have a two-stage structure. Under Nash bargaining theory, the two stages are viewed as players and the DEA efficiency model is a cooperative game model. It is shown that when only one intermediate measure exists between the two stages, our newly developed Nash bargaining game approach yields the same results as applying the standard DEA approach to each stage separately. Two real world data sets are used to demonstrate our bargaining game model.
Year
DOI
Venue
2011
10.1016/j.ejor.2010.08.025
European Journal of Operational Research
Keywords
Field
DocType
Data envelopment analysis (DEA),Two-stage processes,Efficiency,Intermediate measure,Nash bargaining game
Mathematical optimization,Data set,Mathematical economics,Data envelopment analysis,Mathematics,Bargaining problem,Network structure
Journal
Volume
Issue
ISSN
210
2
0377-2217
Citations 
PageRank 
References 
29
0.91
3
Authors
5
Name
Order
Citations
PageRank
Juan Du11548.02
Liang Liang2134492.90
Yao Chen354440.02
Wade D. Cook4121584.70
Joe Zhu51762167.31