• Economics

    The Theory of Interstellar Trade

    The Theory of Interstellar Trade, by Paul Krugman (1978) Archived   Assume we have two planets, Earth and Trantor, separated by a large distance, the traversal of which necessitates travel at velocities comparable to the speed of light.  Assume that Earth and Trantor are in the same inertial reference frame, i.e. they are not accelerating with respect to each other. Assume that a spaceship traveling between the two planets travels at a constant \(v\). Let’s say that from the perspective of an observer on one of the planets, the time it takes for a spaceship to make the trip is \(n\). Then, the time it takes for a spaceship to…