On the Dynamic Theory of Astroeconomics

Abstract

This paper considers the possible theoretical modelling of space exploration in line with the classical assumptions of economic analysis. Three models are examined and analyzed: a simple utility model; a game theoretic model in which each player or participating nation in space exploration follows some rules of rational behaviour involving some sort of strategy to maximize its winnings or successes and minimize losses or failures; as well as a dynamic optimization model.

Keywords: astroeconomics, vainglory effect, psychological propensity, per capita expectation, psychological aversion

JEL Classification: Z0