Evaluating Two-Stage Network Structures: Bargaining Game Approach

Juan Du (), Yao Chen (), Wade D. Cook (), Liang Liang () and Joe Zhu ()
Additional contact information
Juan Du: Tongji University
Yao Chen: University of Massachusetts at Lowell
Wade D. Cook: York University
Liang Liang: University of Science and Technology of China
Joe Zhu: Worcester Polytechnic Institute

Chapter Chapter 8 in Data Envelopment Analysis, 2014, pp 165-187 from Springer

Abstract: Abstract This chapter presents a Nash bargaining game model to measure the performance of two-stage decision making units (DMUs) in data envelopment analysis (DEA). The two stages are viewed as players to bargain for a better payoff, which is represented by DEA ratio efficiency score. The efficiency model is developed as a cooperative game model. It is shown that when only one intermediate measure exists between the two stages, the newly-developed bargaining approach yields the same results as applying the standard DEA approach to each stage separately.

Keywords: Data envelopment analysis; Efficiency; Nash bargaining game; Two-stage structure (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-1-4899-8068-7_8

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