NASA: Maybe $200 Million for first private orbital flight

Hello, koxinga,

my point is that the new private space travel firms might have no chance winning a 200 million Dollar-prize if they have to compete against the traditionals. These don't feel threatened by the XPRIZE - you're right - but they are proposing prizes they want to win for their own purposes and might establish rules that preclude new firms as a political instrument. They are used to low market competition compared to that to be expected if the new firms enter the market successfully - and they want to prohibit additional market competition. The thing between Kistler and SpaceX seems to be due to insufficient market competition. If someone is acting by protest this might be indicating that there is market power including its abuse. If there is additional competition by former prize-competitors this market power will be reduced - and that they perhaps want to prevent because market power makes business life easier and more satisfying at the costs of others - in Economics called monopolistic or oligopolistic exhaustion. That's not desirable if access of the general public to space is the goal.



Dipl.-Volkswirt (bdvb) Augustin (Political Economist)

Hello, Ekkehard Augustin,

I do not know if LM/Boeing is participating in this or not. Can you clarify? If so, my main worry would be the CEV loser. The Project Constallation is going for a first ever fly off contest. It would seem pausible to me that the loser of this fly off might consider signing up for the Challenge, if anything but to recover the cost of investment.

Maybe the committee should clarify this?

I can't clarify the participation of LM/Boeing - I only took them as an example for a huge enterprise becahuse they were spoken of in this discussion.

Huge enterprises are suspected by law as well as by Economics and Economists to abuse their economical power (larger amount of liquidity, cost advantages due to economics of scale and scope, share of the markets, larger prodction capacities, more staff and much more). Boeing is a large enterprise that is suspected and because of this observed by the market competition agencies.

You're right - the loser might sign up for the challenge to get back the costs of his investment by the market. But there may be there may be other chances to get them back too.



Dipl.-Volkswirt (bdvb) Augustin (Political Economist)