Modelling competition and collaboration in the airline industry using agent-based simulation. (1st January 2014)

• Record Type: Journal Article
• Authors: Darabi, Hamid R.; Mostashari, Ali; Mansouri, Mo
• Is Part Of: International journal of industrial and systems engineering. Volume 16:Number 1(2014)
• Page Start: 30
• Page End: 50
• Publication Date: 2014-01-01
• Subjects: network industries -- modelling socio-technical systems -- aviation management -- collaboration and competition dynamics -- agent-based modelling -- ABM; Systems engineering -- Periodicals; Industrial engineering -- Periodicals; 620.001171
• Languages: English
• ISSNs: 1748-5037

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.