Re: Space Access Update #112 9/19/05

"Len" <len@xxxxxxxxxxxxxx> wrote:

>Rather, this comment was meant to be an exercise
>in logic.

Market elasticity is not a matter of logic, but of empirical fact. And
all the facts since 1957 support the view that the elasticity for
orbital launch services is very far below 1. That's quite typical for
extremely expensive goods and services: seen any price wars for
stealth bombers or TeV particle accelerators lately?

Doubtless there *is* some price range in which the elasticity would be
1 -- i.e. halving the price would double the traffic -- but there's no
evidence we're anywhere near it.







.

Quantcast