R2-D2 and C-3PO escape from a Rebel Alliance ship via an escape pod. The Empire briefly considers the benefits of destroying the pod, but they do not because there are no lifeforms in the pod. Because of this, it is not worth it for them to shoot it down. The cost of shooting the podContinue reading “R2-D2 and C-3PO Use an Escape Pod (A New Hope)”
Category Archives: Episode IV: A New Hope
Luke Agrees to go to Alderaan with Ben (A New Hope)
At first, Luke doesn’t want to go to Alderaan, as he needs to stay at home with his aunt and uncle. When Luke discovers that his Aunt Beru and Uncle Owen have been killed by Empire, he now has nobody at home. The opportunity cost to Luke of leaving Tatooine is lower now that hisContinue reading “Luke Agrees to go to Alderaan with Ben (A New Hope)”
Luke and Ben Meet Han Solo (A New Hope)
Obi-Wan Kenobi takes Luke to the place with the most people to find a pilot – a bar. This is because it has the lowest search cost. To find a pilot to take them to Alderaan is challenging; however, they were able to find someone, Han Solo, fairly cheaply. Search costs are the time, energy,Continue reading “Luke and Ben Meet Han Solo (A New Hope)”
Leia’s Home of Alderaan is Destroyed (A New Hope)
Wilhuff Tarkin gives Princess Leia the choice of telling him the location of the rebel base or else he will destroy her home planet of Alderaan. Now Leia is faced with the choice of allowing Alderaan to be destroyed or disclosing the rebel base. This, of course, relies on Wilhuff Tarkin’s threat to be aContinue reading “Leia’s Home of Alderaan is Destroyed (A New Hope)”
Leia and Han’s Motivation (A New Hope)
Princess Leia says that their mission is not over yet; however, Han says that it is for him as he “isn’t in it for the revolution” – he expects to be well paid. This is due to the heightened danger of continuing on the journey with Princess Leia. The supply of people willing to completeContinue reading “Leia and Han’s Motivation (A New Hope)”
Han and Jabba Bargain (A New Hope)
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)”
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)”