A unique equilibrium efficient frontier with fixed-sum outputs in data envelopment analysis

Qingyuan Zhu, Jie Wu (), Malin Song and Liang Liang
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Qingyuan Zhu: University of Science and Technology of China
Jie Wu: University of Science and Technology of China
Malin Song: Anhui University of Finance and Economics
Liang Liang: Hefei University of Technology

Journal of the Operational Research Society, 2017, vol. 68, issue 12, 1483-1490

Abstract: Abstract Based on the equilibrium efficient frontier data envelopment analysis (EEFDEA) approach, Fang (J Oper Res Soc 67:412–420, 2015a) developed an equivalent linear programming model to improve and strengthen the EEFDEA approach. Furthermore, Fang (2015a) indicated that his secondary goal approach can achieve a unique equilibrium efficient frontier. However, through a simple counterexample we demonstrate that Fang’s secondary goal approach cannot always achieve uniqueness of the equilibrium efficient frontier. In this paper, we propose an algorithm based on the secondary goal approach to address the problem. The proposed algorithm is proven mathematically to be an effective approach to guaranteeing the uniqueness of the equilibrium efficient frontier.

Keywords: data envelopment analysis; unique equilibrium efficient frontier; fixed-sum outputs; secondary goal approach (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (14)

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DOI: 10.1057/s41274-017-0181-z

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