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The physics model implemented inside the FLUKA code are briefly described, with emphasis on hadronic interactions. Examples of the capabilities of the code are presented including basic (thin target) and complex benchmarks.

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Photon-photon collisions are investigated in the framework of the two-component Dual Parton Model. The model contains contributions from direct, resolved soft and resolved hard interactions. All free parameters of the model are determined in fits to hadronhadron and photon-hadron cross section data. The model is shown to agree well to hadron production data from hadron-hadron and photon-hadron collisions. The multiparticle production in hadron-hadron, photon-hadron and photon-photon collisions as predicted by the model is compared. Strong differences are only found as function of the transverse momentum variable. The hadron production in photon-photon collisions at present and future electron-positron colliders is studied using photon spectra according to the equivalent photon approximation, according to beamstrahlung and according to backscattered laser radiation.