In May of 2019, Elon Musk’s Space X project launched Starlink telecommunication satellites. The initial launch included 60 satellites out of a potential 1200 satellites to orbit the earth in pursuit of providing a world-wide ultra-fast internet product. Astronomers, however, are not so pleased with this new project. In fact, the American Astronomical Society (AAS) issued a statement of concern that these satellite constellations will create “the potential for substantial adverse impacts to ground- and space-based astronomy. These impacts could include significant disruption of optical and near-infrared observations by direct detection of satellites in reflected and emitted light; contamination of radio astronomical observations by electromagnetic radiation in satellite communication bands; and collision with space-based observatories.”

What kind of a problem is this and What is the root of this problem and Do you think it will be easier or more difficult to solve this problem?

Now, consider the following two scenarios:

Scenario 1: suppose that Musk’s internet product is worth $1B, whereas the value of all astronomical observations is worth $6.5B.

Scenario 2: suppose that Musk’s internet product is worth $8B, whereas the value of all astronomical observations is worth $3B.

Suppose there was a Space Arbitration Court (SAC) that has the power to enforce legal sanctions. In each of the two scenarios above, what would be the resulting outcome and who would end up acquiring the right to “space” if:

a. The SAC rules in favor of Musk, and transaction costs amount to $6B.

b. The SAC rules in favor of Musk, and transaction costs amount to $4B.

c. The SAC rules in favor of the AAS, and transaction costs amount to $6B.

d. The SAC rules in favor of the AAS, and transaction costs amount to $4B.

e. The SAC rules in favor of Musk, and transaction costs are zero.

f. The SAC rules in favor of the AAS, and transaction costs are zero.