Exploring markets with agent-based computer simulations

Roger A. Parker
Global Value Analysis, Boeing Commercial Airplanes, United States and Virtual Minds, SA, Switzerland, Market Modeling

David Perroud
mind-set, Switzerland

PREFACE

Following a presentation of agent-based modeling in marketing in the 2005 ESOMAR Congress (Bakken and Parker (2007)), this paper presents and discusses an actual application of agent-based modeling techniques to a real market. The discussion reviews the concepts of agent-based modeling and its application to marketing science, and offers operational details of a simulation model of the world's passenger airline network, in which the behavior of all 266 million air passengers who travel in the world in a typical week can be explored down to the individual passenger level. This tool is used, for example, to explore: