Allocating a fixed cost across decision-making units with undesirable outputs: A bargaining game approach

Allocating a fixed cost among set of peer decision-making units (DMUs) is one the most important applications data envelopment analysis. However, almost all existing studies have addressed allocation (FCA) problem within traditional framework while ignoring existence undesirable outputs. Undesirable outputs are neither scarce in various production activities real world nor trivial efficiency evaluation and subsequent decision making. Motivated by this observation, article attempts to explicitly extend FCA situations which DMUs necessarily involved with To end, we first investigate considering based on joint weak disposability assumption. Then, flexible schemes considered revisit process. The results show that feasible exist such can be simultaneously efficient. Furthermore, define comprehensive satisfaction degree develop bargaining game approach determine unique scheme. Finally, proposed tested an empirical study banking conditions.