Agent-Based Simulation of Alliance of Automobile Enterprises

Conclusions

In this research, we have developed and illustrated an assumption model for predicting the membership of alliances among automakers that increase their scale of operation. We started with two assumptions: Japanese automakers prefer to join alliances to increase the probability of promoting the competitive power successfully, and to avoid collaborating with Japanese rivals, especially close rivals, in order to maximize its own benefits. We then defined the agents and their sizes, set the parameters, and discussed the result.

We illustrated the effectiveness of our methodology by applying it to the circumstances of the year 2000. Given a plausible set of assumptions concerning automaker size and propensity, we found a robust estimate of alliance configuration. The success indicates that the approach provides a practical method for suggesting which firms in an automobile industry will group together, by using capital partnership and supply data.

The simulation result shows that the proposed fuzzification of landscape theory allows us to analyze the flexible alignment. Using only manufacturer size and propensity, we estimated the probable alliance configurations. Further development of the model presented in this chapter should enhance the factors that determine alliance formation in other setting as is the case with the original theory.