Microeconomics
The approach used by airlines to manage complex route networks is now helping other companies manage their software networks. Within nine months, a retail bank overcomes the limitations of thirty-year-old "legacy" microeconomics systems to launch a high-tech operation that offers its customers a complete range of banking services over the telephone. Another bank is able to roll out, within three months of an acquisition, information systems that deliver the same level of service to all customers at all branches, new and old. (Richard 2002, 177)
For these companies, Microeconomics has genuinely become an enabler of change that boosts competitive performance. The secret: a "hub -and- spoke" approach to building the kind of information systems …show more content…
This approach, based on the work of McFadden (Domencich & McFadden, 1975; McFadden, 1986), provides a means for modeling the cognitive mechanisms that are typically absent in econometric specifications of choice. The inclusion of decision makers ' generalized attitudes and beliefs in the modeling process begins to open the black box that governs choice behavior. The results of our analyses demonstrate that general aviation pilots make decisions about airport use as reasoned adjustments to airport features that either increase or decrease the pilot 's expected value or utility for the airport. The findings, moreover, show that pilots find some airport attributes to be compelling and others to exert a very small impa ct on the choice of an …show more content…
Changing a single service or adding even one flight to a pre-set schedule created such a domino effect on connecting flights that real optimization was impossible. For every type of request, the hub must contain some logic that acts as a master script specifying which applications on which spokes have relevant information and so must be consulted to formulate an answer. (Damon 1994, 40) Knowledge about the fastest method of access to information The master script must also know which information has to be requested in sequence from different systems and which tasks can be executed in
For these companies, Microeconomics has genuinely become an enabler of change that boosts competitive performance. The secret: a "hub -and- spoke" approach to building the kind of information systems …show more content…
This approach, based on the work of McFadden (Domencich & McFadden, 1975; McFadden, 1986), provides a means for modeling the cognitive mechanisms that are typically absent in econometric specifications of choice. The inclusion of decision makers ' generalized attitudes and beliefs in the modeling process begins to open the black box that governs choice behavior. The results of our analyses demonstrate that general aviation pilots make decisions about airport use as reasoned adjustments to airport features that either increase or decrease the pilot 's expected value or utility for the airport. The findings, moreover, show that pilots find some airport attributes to be compelling and others to exert a very small impa ct on the choice of an …show more content…
Changing a single service or adding even one flight to a pre-set schedule created such a domino effect on connecting flights that real optimization was impossible. For every type of request, the hub must contain some logic that acts as a master script specifying which applications on which spokes have relevant information and so must be consulted to formulate an answer. (Damon 1994, 40) Knowledge about the fastest method of access to information The master script must also know which information has to be requested in sequence from different systems and which tasks can be executed in