JJabba The Hutt expresses his disappointment in Han Solo for being late with a payment. Han is one of Jabba’s smugglers in the illegal goods market and recently dropped his cargo at the sight of an imperial starship, which lost Jabba money. To alleviate Jaba’s disappointment Han offers to not only pay him back butContinue reading “Han and Jabba Bargain (A New Hope)”
Category Archives: Microeconomics
The Cost of Luke’s College (A New Hope)
Luke gets upset when he can’t go off to flight academy in the upcoming fall as he must stay to help his Uncle Owen during the harvest. In order to be able to stay and help his uncle for one more harvest season, there are several things that Luke must forgo; the most valuable ofContinue reading “The Cost of Luke’s College (A New Hope)”
Han and Greedo Discuss Han’s Bounty (A New Hope)
Jabba the Hutt has placed a bounty on Han Solo’s head “so large [that] every bounty hunter in the galaxy” is looking for him. This caused Greedo, along with presumably many others, to search for Han since the price for him is so high. Han explains that his life should be spared since he hasContinue reading “Han and Greedo Discuss Han’s Bounty (A New Hope)”
Luke purchases R2-D2 and C-3PO (A New Hope)
Luke and Owen switch the R2 units they wish to buy when a single part fails. A truly rational decision would factor in the expected failure of all parts; however, such an investigation would be too costly and they are limited to the knowledge that they have at hand. Thus they are using bounded rationality,Continue reading “Luke purchases R2-D2 and C-3PO (A New Hope)”
Luke Sells His Speeder (A New Hope)
Luke must sell his automobile in order to hire a pilot and ship to fly himself and Obi-Wan. Luke doesn’t get much in return for selling his automobile though since a newer model was released and they’re not in demand anymore. This is due to the increased demand in similar but newer and perhaps improvedContinue reading “Luke Sells His Speeder (A New Hope)”