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

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

Research output: Contribution to journalArticle

29 Scopus citations

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.

Original languageEnglish
Pages (from-to)560-569
Number of pages10
JournalEuropean Journal of Operational Research
Volume212
Issue number3
DOIs
StatePublished - 1 Aug 2011

Keywords

  • Competition
  • Data envelopment analysis (DEA)
  • Efficiency evaluation
  • Fixed-sum output

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