Sharif University of Technology Scientia Iranica 1026-3098 29 2 2022 04 01 Stepwise pricing in evaluating revenue efficiency in data envelopment analysis: A case study of power plants 915 928 21869 10.24200/sci.2020.55350.4184 EN Z. Moghaddas Department of Mathematics, Qazvin Branch, Islamic Azad University, Qazvin, Iran M. Vaez-Ghasemi Department of Mathematics, Rasht Branch, Islamic Azad University, Gilan, Iran F. Hosseinzadeh Lotfi Department of Mathematics, Science and Research, Islamic Azad University, Tehran, Iran R. Farzipoor Saen Faculty of Business, Sohar University, Sohar, Oman 0000-0002-0851-6509 Journal Article 2020 01 30 Data envelopment analysis (DEA) technique is widely applied for performance assessment of decision making units (DMUs). The revenue efficiency (RE) evaluation is one of the controversial subject matters that can be performed through DEA context. The amount of productions and its prices are crucial factors in the RE. The classical DEA models consider the prices to be fixed and known which are not the case in real world. Also, the classical DEA models considers linear pricing in revenue assessment. However, most of real world problems deal with nonlinear prices. This paper evaluates the RE given the piecewise linear theory in non-competitive situations. In doing so, a stepwise pricing function is introduced which lets the prices to be changed in relation to the amount of the production. As an innovative idea, a more accurate mathematical modeling for the RE is proposed. We define a dynamic weights’ function in maximum revenue optimization model which no longer considers fixed prices. A case study validates our proposed model. https://scientiairanica.sharif.edu/article_21869_a2009556541dfee38d822cf642d80b8c.pdf