A Slacks-Based Measure Model for Computing Game Cross-Efficiency

Abstract

This paper introduces an improved slack-based game cross-efficiency measurement model that enhances the existing cross-efficiency framework and integrates it with the Data Envelopment Analysis (DEA) game cross-efficiency. The model ensures the fairness of its results through the implementation of a more stringent selection of frontier face weights. It accounts for the competitive relationships among Decision Making Units (DMUs), achieving a Nash equilibrium solution through continuous iterations. Furthermore, the model accounts for undesirable outputs and various strategic orientations, enhancing its applicability. The model’s effectiveness is validated through comparative analyses of diverse case studies. Additionally, the model’s practical utility is demonstrated through the analysis of industrial data from various Chinese provinces between 2010 and 2019. Analysis results show that the proposed model measures production efficiency with greater precision and comparability than alternative models.