EC 425 Thomas D. Jeitschko

EC 425 Thomas D. Jeitschko Law and Economics 4C Marshall Hall Spring 2002 Office Hrs: Thursdays 9a – 12n Tuesday and Thursday 2:40-4:00 pm Tel: 355-8302 110 Berkey Hall E-mail: [email protected]

Economics 425 Law and Economics Essay Case No. 4: United States v. Stardust Inc.

This case is based on discussions with Luke McKenney and Siena Fath-Azam:

In 2050 the United States successfully launches a manned landing operation to Saturn. Upon landing on Saturn an American flag is planted on the surface of the planet and some soil and rock samples are collected that are later returned to the Earth. In 2052 Stardust Inc., repeats the feat and successfully launches an exploration expedition of Saturn. Lands on the opposite side of Saturn and establishes a permanent unmanned landing base at that location. It is Stardust’s intention to mine the planet for commercial gain. As a first step they want to claim legal title to the entire planet arguing “first possession” of something that was previously un-owned.

The United States government is wondering whether Stardust’s claim is cause for concern.

Using the notions of “first possession” and economic efficiency, discuss the following assertions: 1. Stardust Inc. owns Saturn. 2. Stardust Inc. has a legitimate ownership claim to the area where they installed the permanent unmanned base. 3. Stardust Inc. can only claim ownership of mineral deposits they return to the Earth. Might the United States government have competing counterclaims? Discuss.