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Paul Krugman's 1978 Theory of Interstellar Trade

Posted by kdawson on from the world's-pre-eminent-stand-up-economist dept.

jerryasher recommends Paul Krugman's blog at the NYTimes, where he introduces a paper he wrote, The Theory of Interstellar Trade, with tongue very much in cheek. Some packrat academician was kind enough to send him a scan, because "back then academics did their work with typewriters, abacuses, and stone axes." Abstract: This paper extends interplanetary trade theory to an interstellar setting. It is chiefly concerned with the following question: how should interest rates on goods in transit be computed when the goods travel at close to the speed of light? This is a problem because the time taken in transit will appear less to an observer traveling with the goods than to a stationary observer. A solution is derived from economic theory, and two useless but true theorems are proved... This paper, then, is a serious analysis of a ridiculous subject, which is of course the opposite of what is usual in economics."

4 of 173 comments (clear)

  1. But... by Paltin · · Score: 5, Funny

    What does this have to do with the price of tea on Trantor?

  2. Re:Figure 2 is really informative by mdenham · · Score: 5, Funny

    Let's say they were selling a brand new Earth. 6000 years ago, such a thing would not have been necessary On the contrary, this would fit in quite well with fundamentalist Christian beliefs.

    The buyer? Well, he dresses all in white, has a big white beard, talks out of burning bushes...

  3. Re:Aluminum by PrimordialSoup · · Score: 5, Funny

    Who's to say what nanotechnology will be able to do in 200 years? Nothing big.
  4. Oh exploitable by Anonymous Coward · · Score: 5, Funny

    Hi my name is Prince Valtor Tazalutium the Third from the distant planet Nigeron 7. I have dispatched the fastest cargo ships in my fleet to Earth filled with the rich treasures of my home planet. However because of the vast distance between our two planets my ships will not reach Earth until I am long dead and therefore will not receive a return on my initial investment. As I have no heirs I am looking for one trustworthy stranger to buy these ships and their cargo en route to your planet. I am willing to sell them for $50,000.00 US DOLLARS. If interested please contact me at valtorlol@aol.com.