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Peng, K.-L.; Xue, X.; Yu, L.; Ren, Y. Inferencing Space Travel Pricing from Mathematics of General Relativity Theory, Accounting Equation, and Economic Functions. Mathematics2024, 12, 757.
Peng, K.-L.; Xue, X.; Yu, L.; Ren, Y. Inferencing Space Travel Pricing from Mathematics of General Relativity Theory, Accounting Equation, and Economic Functions. Mathematics 2024, 12, 757.
Peng, K.-L.; Xue, X.; Yu, L.; Ren, Y. Inferencing Space Travel Pricing from Mathematics of General Relativity Theory, Accounting Equation, and Economic Functions. Mathematics2024, 12, 757.
Peng, K.-L.; Xue, X.; Yu, L.; Ren, Y. Inferencing Space Travel Pricing from Mathematics of General Relativity Theory, Accounting Equation, and Economic Functions. Mathematics 2024, 12, 757.
Abstract
This study derives space travel pricing by Walrasian Equilibrium, which is logical reasoning from the general relativity theory (GRT), the accounting equation, and economic supply and demand functions. The Cobb-Douglas functions embed the endogenous space factor as new capital to form the space travel firm's production function, which is also transformed into the consumer's utility function. Thus, the market equilibrium occurs at the equivalence of supply and demand functions, like the GRT presents the equivalence between the spatial geometric tensor and the energy-momentum tensor, which explains the principles of gravity and the motion of space matter in the spacetime framework. The mathematical axiomatic set theory of the accounting equation explains the equity premium effect that causes a short-term accounting equation inequality, then reaches the equivalence by suppliers' incremental equity through the closing accounts process of the accounting cycle. On the demand side, the consumption of space travel can be assumed as a value at risk (VaR) investment to attain the specific spacetime curvature in an expected orbit. Spacetime market equilibrium is then achieved to construct the space travel pricing model. The methodology of econophysics and analogy method was applied to infer the space travel pricing by the model of profit maximization, single-minded, and envy-free pricing in unit-demand markets. A case study with simulation was conducted for empirical verification of the math models and algorithm. Results show that space travel pricing remains the principle of market equilibrium but needs to be extended to the spacetime tensor of GRT.
Keywords
space travel price; general relativity theory; accounting equation; equity premium; axiomatic set theory; Cobb-Douglas functions
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
