Finding a Common Weight Vector of Data Envelopment Analysis Based upon Bargaining Game

Abstract

Data Envelopment Analysis (DEA) is a mathematical programming method for measuring the relative efficiency of Decision Making Units (DMUs) by evaluating their outputs and inputs. In the history of DEA, the cross-efficiency of jth DMU is widely used as an efficiency measure of a given DMU_o among researchers. The approach always utilizes weights related to inputs and outputs in the assessment. Unfortunately, the weights are not always uniquely determined in the cross-efficiency measurement because DEA always suffers from an occurrence of multiple solutions, so indicating an occurrence of multiple weights. To overcome such a difficulty, this paper proposes a new approach for determining a common weight vector of DEA based on bargaining game.