Oligopoly competition between satellite constellations will reduce economic welfare from orbit use.

ABSTRACT: Orbital space enables many essential services, such as weather forecasting, global communication, navigation, Earth observation for environmental and agricultural management, and national security applications. Orbit use is increasingly defined by firms launching coordinated fleets-"constellations"-of satellites into low-Earth orbit. These firms operate in markets with few or no competitors, such as the market for broadband internet provision to rural areas. How will oligopolistic competition shape the allocation of orbital space? We analyze orbital-use patterns and economic welfare when two profit-maximizing firms operate satellite constellations with sophisticated collision avoidance systems. We compare this duopoly equilibrium to public utility constellations designed and regulated to m

SUBMITTER: Guyot J 

PROVIDER: S-EPMC10614827 | biostudies-literature | 2023 Oct

REPOSITORIES: biostudies-literature