Non-Convex Cost and Revenue Efficiency Analysis in Two-Stage Networks and Its Application to Iranian Airlines

In the real word, the decision maker may want to use revenue and cost effciency analysis for existing units compared to virtual units, traditional DEA models can no longer be used and FDH models must be used to evaluate the effciency of decision-making units. In this paper, we develop the revenue and cost effciency models based on the FDH model and obtain the effciency scores based on pair wise comparisons. In the following, we will develop the proposed models for the two-stage network structure and obtain the desired scores of inputs and outputs by considering the input and output prices. An algorithm for measuring the revenue and cost effciency is presented based on the ratio of inputs and outputs. Finally, we use the proposed algorithm to evaluate the effciency of 13 airports in Iran with a two-stage network structure without considering the constraint of convexity and present the results of the research.