Competition strategy and efficiency evaluation for decision making units with fixed-sum outputs

Feng Yang, Desheng Dash Wu, Liang Liang and Liam O'Neill

European Journal of Operational Research, 2011, vol. 212, issue 3, 560-569

Abstract: This paper develops a DEA (data envelopment analysis) model to accommodate competition over outputs. In the proposed model, the total output of all decision making units (DMUs) is fixed, and DMUs compete with each other to maximize their self-rated DEA efficiency score. In the presence of competition over outputs, the best-practice frontier deviates from the classical DEA frontier. We also compute the efficiency scores using the proposed fixed sum output DEA (FSODEA) models, and discuss the competition strategy selection rule. The model is illustrated using a hypothetical data set under the constant returns to scale assumption and medal data from the 2000 Sydney Olympics under the variable returns to scale assumption.

Keywords: Data; envelopment; analysis; (DEA); Efficiency; evaluation; Competition; Fixed-sum; output (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:212:y:2011:i:3:p:560-569

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