AIRWAYS: A Microcomputer Simulation of a Service Industry

Abstract

Erie majority of simulation exercises represent manufacturing situations. While product-oriented simulations are important, a significant area of business activity has been neglected. This is the service sector. AIRWAYS has been developed for use by those who desire a game which encompasses the expanding area of services. Although there are some services games (for example, see [2, 5, 7, 13]), the number is limited in comparison to manufacturing games. AIRWAYS also has some important game advances. The marker and firm demand functions are based on a system advocated by Gold and Pray [3, 4] and Pray and Gold [12]. This system eliminates the need to artificially impose parameters for the purpose of preventing “blow-ups. Also, careful attention has been devoted to assigning elasticities that assure results consistent with economic theories and consumer behavior. Overall, this game endeavors Co provide students with a realistic example of the interaction of variables important in a services environment.