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Measuring performance of two-stage network structures by DEA: A review and future perspective
Authors:Wade D Cook  Liang Liang  Joe Zhu
Institution:1. Schulich School of Business York University Toronto, Ontario, Canada, M3J 1P3;2. School of Management University of Science and Technology of China He Fei, An Hui Province, PR China 230026;3. Department of Management Worcester Polytechnic Institute Worcester, MA 01609
Abstract:Data envelopment analysis (DEA) is a method for measuring the efficiency of peer decision making units (DMUs). An important area of development in recent years has been devoted to applications wherein DMUs represent two-stage or network processes. One particular subset of such processes is those in which all the outputs from the first stage are the only inputs to the second stage. The current paper reviews these models and establishes relations among various approaches. We show that all the existing approaches can be categorized as using either Stackelberg (leader-follower), or cooperative game concepts. Future perspectives and challenges are discussed.
Keywords:Data envelopment analysis (DEA)  Efficiency  Game  Intermediate measure  Network  Cooperative  Two-stage
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