{"title":"Our Current Understanding of the Interstellar Economy","authors":"Gabriel Übleis","doi":"10.2139/ssrn.3623450","DOIUrl":null,"url":null,"abstract":"This essay provides a gentle introduction to the concept of time dilation and its effect on riskless fixed income returns. A no-arbitrage argument is derived which demonstrates that investors are only indifferent between investment on earth and some other place in the universe, if companies offer returns that are contingent on the location of the individual investors. Since this has a direct impact on capital cost, time dilation could be seen as a form of factor endowment.","PeriodicalId":209192,"journal":{"name":"ERN: Asset Pricing Models (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2020-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ERN: Asset Pricing Models (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3623450","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This essay provides a gentle introduction to the concept of time dilation and its effect on riskless fixed income returns. A no-arbitrage argument is derived which demonstrates that investors are only indifferent between investment on earth and some other place in the universe, if companies offer returns that are contingent on the location of the individual investors. Since this has a direct impact on capital cost, time dilation could be seen as a form of factor endowment.