A DEA-based Mathematical Model to Determine the Competitiveness Strategies, Considering the Correlation Between parameters of and size of DMUs: Case Study in Insurance Industry

Abstract

Since the acquisition of the market share is a correlational parameter, (the sum of the total market share of the competing organizations must be 100 percent) and the maximum in the present study, a DEA-based mathematical model was proposed to specify the competition strategies considering the correlational parameters and the magnitude and dimensions of insurance organizations. To examine the efficiency and the reliability of the proposed model, a real problem was solved in the domain of insurance industry and the results were compared with those of the basic CCR model. The findings revealed that the use of the basic CCR model to solve the problem produces unrealistic results that contradict the conditions and constraints of the real world. This was the case despite the fact that the proposed model proved more efficient and the results suggested that the proposed model improved the weaknesses of the basic DEA models in the domain of insurance institutes

Keywords

• "data envelopment analysis"
• "competitive strategies"
• "insurance industry"
• "organization size
• " "correlated parameters"