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.
CITATION STYLE
Du, J., Chen, Y., Cook, W. D., Liang, L., & Zhu, J. (2014). Evaluating two-stage network structures: Bargaining game approach. In International Series in Operations Research and Management Science (Vol. 208, pp. 165–187). Springer New York LLC. https://doi.org/10.1007/978-1-4899-8068-7_8
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