Ownership-specified network DEA models

Abstract

To our knowledge, all network DEA models proposed in the literature so far either implicitly or explicitly assume that all entities comprised of a network (system) are owned by a single owner, i.e., a centralized system. As a result, those models are not applicable to performance evaluation for a wide variety of distributed and hybrid systems in practice. Therefore, this study aims to show the importance of taking into account the ownership structure of networks (systems) in constructing effective network DEA models, and accordingly develops three ownership-specified (centralized, distributed and hybrid) network DEA models in terms of both input- and output-orientation. A numerical example is used to validate the critical importance of the ownership with entities and thus networks in both network DEA methodologies and applications.