Game Cross Efficiency for Systems with Two-Stage Structures

Data envelopment analysis (DEA) is a nonparametric approach for measuring the relative efficiencies of peer decision-making units (DMUs). For systems with two-stage structures, where all the outputs from the first stage are the only inputs to the second stage, the centralized model, which is based o...

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Main Authors: Chaoqun Ma, Debin Liu, Zhongbao Zhou, Wei Zhao, Wenbin Liu
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Journal of Applied Mathematics
Online Access:http://dx.doi.org/10.1155/2014/747596
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author Chaoqun Ma
Debin Liu
Zhongbao Zhou
Wei Zhao
Wenbin Liu
author_facet Chaoqun Ma
Debin Liu
Zhongbao Zhou
Wei Zhao
Wenbin Liu
author_sort Chaoqun Ma
collection DOAJ
description Data envelopment analysis (DEA) is a nonparametric approach for measuring the relative efficiencies of peer decision-making units (DMUs). For systems with two-stage structures, where all the outputs from the first stage are the only inputs to the second stage, the centralized model, which is based on the concept of cooperative game theory, has been widely used to examine the efficiencies of such systems. We define the cross efficiencies of systems with two-stage structures. Since the centralized model may lead to multiple and unacceptable cross efficiencies and rankings of DMUs due to its high flexibility in choosing optimal weights on input and output factors, we develop a game model to obtain a unique cross efficiency measure, which is constructed from the perspective of noncooperative game. An iterative algorithm is then proposed to obtain the game cross efficiencies for the overall systems and subsystems. We use the proposed game model to evaluate the performance of top 30 US commercial banks. The results show that the game model can lead to a unique reasonable cross efficiency for each DMU.
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id doaj-art-53a73b2ab3dd47a6bb570dd3d72e07ee
institution Kabale University
issn 1110-757X
1687-0042
language English
publishDate 2014-01-01
publisher Wiley
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series Journal of Applied Mathematics
spelling doaj-art-53a73b2ab3dd47a6bb570dd3d72e07ee2025-08-20T03:36:25ZengWileyJournal of Applied Mathematics1110-757X1687-00422014-01-01201410.1155/2014/747596747596Game Cross Efficiency for Systems with Two-Stage StructuresChaoqun Ma0Debin Liu1Zhongbao Zhou2Wei Zhao3Wenbin Liu4School of Business Administration, Hunan University, Changsha 410082, ChinaSchool of Business Administration, Hunan University, Changsha 410082, ChinaSchool of Business Administration, Hunan University, Changsha 410082, ChinaSchool of Business Administration, Hunan University, Changsha 410082, ChinaSchool of Business Administration, Hunan University, Changsha 410082, ChinaData envelopment analysis (DEA) is a nonparametric approach for measuring the relative efficiencies of peer decision-making units (DMUs). For systems with two-stage structures, where all the outputs from the first stage are the only inputs to the second stage, the centralized model, which is based on the concept of cooperative game theory, has been widely used to examine the efficiencies of such systems. We define the cross efficiencies of systems with two-stage structures. Since the centralized model may lead to multiple and unacceptable cross efficiencies and rankings of DMUs due to its high flexibility in choosing optimal weights on input and output factors, we develop a game model to obtain a unique cross efficiency measure, which is constructed from the perspective of noncooperative game. An iterative algorithm is then proposed to obtain the game cross efficiencies for the overall systems and subsystems. We use the proposed game model to evaluate the performance of top 30 US commercial banks. The results show that the game model can lead to a unique reasonable cross efficiency for each DMU.http://dx.doi.org/10.1155/2014/747596
spellingShingle Chaoqun Ma
Debin Liu
Zhongbao Zhou
Wei Zhao
Wenbin Liu
Game Cross Efficiency for Systems with Two-Stage Structures
Journal of Applied Mathematics
title Game Cross Efficiency for Systems with Two-Stage Structures
title_full Game Cross Efficiency for Systems with Two-Stage Structures
title_fullStr Game Cross Efficiency for Systems with Two-Stage Structures
title_full_unstemmed Game Cross Efficiency for Systems with Two-Stage Structures
title_short Game Cross Efficiency for Systems with Two-Stage Structures
title_sort game cross efficiency for systems with two stage structures
url http://dx.doi.org/10.1155/2014/747596
work_keys_str_mv AT chaoqunma gamecrossefficiencyforsystemswithtwostagestructures
AT debinliu gamecrossefficiencyforsystemswithtwostagestructures
AT zhongbaozhou gamecrossefficiencyforsystemswithtwostagestructures
AT weizhao gamecrossefficiencyforsystemswithtwostagestructures
AT wenbinliu gamecrossefficiencyforsystemswithtwostagestructures