Allocating the fixed cost:an approach based on data envelopment analysis and cooperative game

Li, Yongjun, Li, Feng, Emrouznejad, Ali, Liang, Liang and Xie, Qiwei (2019). Allocating the fixed cost:an approach based on data envelopment analysis and cooperative game. Annals of Operations Research, 274 (1-2), 373–394.

Abstract

Allocating the fixed cost among a set of users in a fair way is an important issue both in management and economic research. Recently, Du et al. (Eur J Oper Res 235(1): 206–214, 2014) proposed a novel approach for allocating the fixed cost based on the game cross-efficiency method by taking the game relations among users in efficiency evaluation. This paper proves that the novel approach of Du et al. (Eur J Oper Res 235(1): 206–214, 2014) is equivalent to the efficiency maximization approach of Li et al. (Omega 41(1): 55–60, 2013), and may exist multiple optimal cost allocation plans. Taking into account the game relations in the allocation process, this paper proposes a cooperative game approach, and uses the nucleolus as a solution to the proposed cooperative game. The proposed approach in this paper is illustrated with a dataset from the prior literature and a real dataset of a steel and iron enterprise in China.

Publication DOI: https://doi.org/10.1007/s10479-018-2860-9
Divisions: Aston Business School > Operations & Information Management
Engineering & Applied Sciences > Computer Science
Additional Information: The final publication is available at Springer via http://dx.doi.org/10.1007/s10479-018-2860-9
Uncontrolled Keywords: Cooperative game,Data envelopment analysis (DEA),Fixed cost allocation,Nucleolus,Decision Sciences(all),Management Science and Operations Research
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Related URLs: https://link.sp ... 0479-018-2860-9 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2019-03-15
Published Online Date: 2018-04-21
Authors: Li, Yongjun
Li, Feng
Emrouznejad, Ali ( 0000-0001-8094-4244)
Liang, Liang
Xie, Qiwei

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