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view/download model file: low_cost_match.nlogo
Given a market characterized by the presence of a big monopolist airline, the aim of this simulation is to observe what might happen when a low cost airline break in the market. How will a low cost airline influence the market through its low price based policy?
The number of destinations reached by the two airline is represented by the grey patches. Airline A and the low cost airline B are represented respectively by yellow and white airline shaped turtles. Passengers are represented by man shaped turtles. The latter may assume different colors: red (happy A flying passengers), green (sad A flying passengers), blue (happy B flying passengers). The consequent matches between airlines and passengers will depend on their characteristics and preferences. Some passengers may be happy flying with the monopolist A, some may not. The last ones may be satisfied solely when B burst on the scene.
-> Click on the SETUP button to set up destinations, passengers and the monopolist A.
-> Thanks to the sliders 'destinations', 'fvoliA', 'sbordoA','prezzoA', 'prezzoB' you can respectively choose: the number of destinations served, airline A frequence flights, airline A service on board, airline A ticket price and finally airline B ticket price.
-> The three monitors 'happyflyingpassA','sadflyingpassA','happyflyingpassB' show how many passengers are happy to fly with A, how many are sad for this and how many get happy when they can choose to fly with B.
-> Switching on 'show-pmaxp?' you can see the highest price every passenger is willing to spend.
-> 'happyflyingpassengersB' plots the number of passengers who are happy to fly with the low cost B.
-> Click on the GO button to start the simulation.
Notice that when you "setup" the simulation passengers are orange and of a smaller size than later on. After you click on the GO button passengers change size and color(red/green). Also the two airlines own different sizes; airline A is bigger than B underlying its monopolist condition; airline B is smaller than A pointing out its new active role on the market. Notice that if airline B dies it will automatically disappear from the simulation. Finally notice that 'ticks counter' is very important in distinguishing the different moments of the simulation.
Case 1: try to see what happens setting a high airline A price and the max airline A total service. Set airline B initial price lower than A one.
Case 2: try to see what happens setting a high price and the lowest total service for airline A. Set airline B initial price lower than A one.
Case 3: try to see what happens setting a high price and an average total service for A. Set airline B initial price lower than A one.
Case 4: try to see what happens setting a low price and an average total service for A. Set airline B initial price lower than A one.
Case 5:try to see what happens setting a low price and the max total service for A. Set airline B initial price lower than A one.
Case 6: try to see what happens setting a low price and the min total service for A. Set airline B initial price lower than A one.
Case 7: try to see what happens when airline A initial price is lower or equal than or to airline B initial price. This is the case when the airline A management foresees airline B strategy. What will the simulation show?
It might be intersting to add more variables characterizing airlines features and passengers preferences. This will lead the simulation and the match process to be more sophisticated.