Article ID Journal Published Year Pages File Type
1032553 Omega 2013 9 Pages PDF
Abstract

The current study focuses on efficiency improvement for banking systems from multiple perspectives, which have different definitions of input/output about various attributes of a banking system. In this research we utilize data envelopment analysis (DEA) and Nash bargaining game (NBG) theory to improve inefficient banks in order to: (1) Make the inefficient bank be the state of Pareto Optimality for multiple perspectives, which can avoid discontentment of some perspectives. (2) Improve a bank by changing its attributes and provide various improving schemes for decision makers. A numerical case study of Japanese banks is also given to show the results of equilibrium solution from multiple perspectives.

► We propose a new DEA model incorporating NBG theory. ► The model improves the efficiency of banks from multiple perspectives. ► We examine changes of the efficiency of banks by the model. ► An appropriate improving scheme is selected to improve inefficient banks.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
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