Collective Intelligence and Collaboration: A Case Study in Airline Industry

In order to improve their competitive performance, airline companies often adopt as a strategy to establish arrangement between two or more organizations agreeing to cooperate on a substantial level. This strategy is often known as airline alliances. A pa

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Faculty of Economics, University of Porto, Porto, Portugal {sonia.c.teixeira,renato.s.fernandes}@inesctec.pt, [email protected] 2 LIAAD - INESC TEC, Porto, Portugal [email protected] 3 CPES - INESC TEC, Porto, Portugal

Abstract. In order to improve their competitive performance, airline companies often adopt as a strategy to establish arrangement between two or more organizations agreeing to cooperate on a substantial level. This strategy is often known as airline alliances. A paradigm to analyze the collective intelligence behavior which emerges from a group, as a strategic alliance, is the flocking behavior. Inspired by the Cucker and Smale algorithm (C-S) we propose a new version of the flocking behavior algorithm applied to airline alliances. Our goal is to understand the link between strategic alliances and flocks. For this new approach, metrics were obtained for the parameters of C-S algorithm, namely position, velocity and influence, where the latter uses cooperative games. Besides, reinforcement learning mechanisms have been explored. Some relevant outputs for airline alliances as the permanence rate and the growth rate were computed for each of the five configurations in analysis. Keywords: Collective intelligence

 Airline industry  Flocking behavior

1 Introduction The evolution of markets induces a change in the way organizations act. Collaboration between organizations, as an alternative or in parallel to competition, allows them to get the edge over other competitors or potential new organizations of the same market [8]. In this work, we focus on airline industry and explore the emerging collective intelligence and collaboration in the perspective of flocking behavior. The nature of airline industry is different from other industries because it requires public reassurances and operating procedures that include a governmental involvement, which implicitly encourages collaborative working practices [5]. Collaboration in airline industry allows organizations to reduce costs from sharing operational staff, making investments or negotiating extra volume discounts, what can represent lower prices due to lowered operational costs for a given route [7]. In that way, organizations increase revenue and generate opportunities. What derives from the shared belief that together the network members can achieve goals that would not be possible or would have a higher cost if they try to © IFIP International Federation for Information Processing 2016 Published by Springer International Publishing Switzerland 2016. All Rights Reserved H. Afsarmanesh et al. (Eds.): PRO-VE 2016, IFIP AICT 480, pp. 148–155, 2016. DOI: 10.1007/978-3-319-45390-3_13

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achieve individually [2]. Social dynamics factors are important to understand fundamental economic questions, which can be compromised when social preferences are not taken into account, because it is not possible to understand adequately the laws that govern cooperation and collective action, or the effects and the determinants