Cooperation and Competition Strategy Analysis of Decision-Making Units Based on Efficiency Game

Abstract

Data envelopment analysis (DEA) method based on game theory effectively ranks the decision-making units (DMUs) by the view of cooperation or competition. The DEA method based on partial ordered set theory depicts the relationships among DMUs. However, these methods are unable to reveal the complex cooperation and competition relationships among DMUs. In this paper, an optimal model for DMUgroup game strategy isproposed based onthegeneralized DEA method and gametheory. According to this model, we can effectively depict the efficiency change of DMUs. Moreover, the effect of various game relationships on individual and the union of DMUs can be characterized. It is of positive significance for decision makers to find partners and moderate the cooperation and competition situation of their competitors. Finally, the cooperation and competition relationships of 9 express enterprises in a certain area in China are analyzed by using the method proposed in this paper.

Keywords

Generalized DEA / game theory / cross efficiency / cooperation and competition

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