Int. J. of Industrial and Systems Engineering   »   2014 Vol.16, No.1

 

 

Title: Modelling competition and collaboration in the airline industry using agent-based simulation

 

Authors: Hamid R. Darabi; Ali Mostashari; Mo Mansouri

 

Addresses:
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA

 

Abstract: In network industries such as the airline industry competitions and collaborations between organisations shape the dynamics of the market significantly. The conditions under which firms choose to collaborate instead of competing are of particular importance in understanding the effects of regulatory actions within such industries. In this paper, an agent-based simulation and modelling approach is used to study the dynamics of competition and collaboration among airlines in the USA under different regulatory conditions and corporate strategic choices. The analysis is limited to a single competitive domestic flight corridor (New York City to Los Angeles). The results of the set of developed models show that both individual corporate strategies and government policies can have a significant impact on competition and collaboration dynamics of the system.

 

Keywords: network industries; agent-based modelling; ABM; socio-technical systems; STS; aviation management; collaboration dynamics; competition dynamics; agent-based simulation; agent-based systems; multi-agent systems; MAS; airlines; corporate strategy; government policy.

 

DOI: 10.1504/IJISE.2014.057941

 

Int. J. of Industrial and Systems Engineering, 2014 Vol.16, No.1, pp.30 - 50

 

Available online: 28 Oct 2013

 

 

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