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What is Isoquant

Chapter 8
Handbook of Research on Strategic Performance Management and Measurement Using Data Envelopment Analysis
Graph in space of two inputs, on which weakly efficient production units producing the same outputs are located.
Published in Chapter:
Models and Methods for Decision Making Support in the Negotiation Process
V. E. Krivonozhko (National University of Science and Technology “MISIS”, Russia), A. A. Piskunov (Accounts Chamber of the Russian Federation, Russia), A. V. Lychev (Accounts Chamber of the Russian Federation, Russia), and M. A. Ivasechko (Accounts Chamber of the Russian Federation, Russia)
Copyright: © 2014 |Pages: 23
DOI: 10.4018/978-1-4666-4474-8.ch008
Abstract
In this chapter, an approach for evaluation of agreements on transnational projects during the negotiation process is proposed. One can show that the negotiation process can be represented as the behavior of decision-making units (countries) in the multidimensional space of economic indicators using Data Envelopment Analysis (DEA) models. In this case, the goals, which can be achieved by units as a result of accomplishment of a joint project, can be determined as points in the multidimensional space. Optimal directions toward these goals and cones of possible directions can be found with the help of Analytic Hierarchy Process (AHP). The efficiency measures for countries are calculated as ratios of the values of potential functions at the initial (intermediate) and final points. The increments of efficiencies measures are considered as arguments in the negotiation process. The approach is illustrated by the real-life data set taken from open international sources.
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