Question

a.You are thinking of starting the first moon tourism company, but before starting your company, you want to know whether there is enough demand. Come up with three revealed preference methods   for measuring people’s value of going to the moon.

b.You are a NASA administrator. Come up with three revealed preference methods   for measuring the

Answer 1

Revealed preference theory holds that consumers' preferences can be revealed by what they purchase under different circumstances. Now, people's value of going to the moon can be measured by the following revealed preference methods:

1. The first kind of method we can use is a survey method whereby we can people questions regarding their interest in exploring space like how much people follow up on the research missions of NASA regarding space,how much people know about the space missions to moon etc. If people are interested in keeping themselves updated with the facts and developments, they might also be interested in actual moon tourism.

2. The second method can be showcasing a small documentary or a full fledged film which explores the possibility of moon tourism and what it would look like (if it happens in future) including other details. If a significant number of viewers turn up, those people might also be interested in actual moon tourism.

3. The third method can be giving people the opportunity to meet the astronauts who have actually been up there on the moon (though this might be a little expensive). However, people's interest in asking the astronauts questions regarding their adventure and other interactions will also give us the idea regarding people,s interests in moon tourism.

4. Another method can be organising a fake moon-like environment using digital technology and give people the idea regarding it. More people turning up for this will give us the idea about people's interests.