Application of Transaction Costs in Analyzing Transport Corridors Using Multi-Agent-Based Simulation

Lawrence E. Henesey

Lawrence E. Henesey

Keywords: transaction cost economics, transport co'idors, Multi-Agents Systems, simulation, terminals and short-sea shipping

Abstract

In analyzing the freight transportation systems, such as thetransport of intermodal containers, often direct monetary costsassociated with transportation are used to evaluate or determinethe choice of transport corridor. In forming decisions ontransport co'idor choice, this paper proposes that transactioncosts can be considered as an additional determinant in conductingtransport corridor analysis. The application of transactioncosts theory in analyzing the organizations and the transactionsthat occur, assists in indicating as to which governancestructure results in higher efficiencies. Efficiency is seen as eitherthe minimisation on costs or the maximisation of customerservice levels. The use of multi-agent based simulation for modellingthe organisational structure and mechanisms provides anovel approach in understanding the relationships in a regionaltransport co'idor.

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