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

Hamid R. Darabi, Ali Mostashari, Mo Mansouri

    Research output: Contribution to journalArticlepeer-review

    3 Scopus citations

    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.

    Original languageEnglish
    Pages (from-to)30-50
    Number of pages21
    JournalInternational Journal of Industrial and Systems Engineering
    Volume16
    Issue number1
    DOIs
    StatePublished - 2014

    Keywords

    • ABM.
    • agent-based modelling
    • aviation management
    • collaboration and competition dynamics
    • modelling socio-technical systems
    • network industries

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