Do economic principles explain orbital use in space?

While the global space economy continues to rapidly grow, and public policy challenges related to satellites and debris in orbit emerge, there is surprisingly little evidence connecting theoretical economic frameworks with observed orbital usage. Using a state-of-the-science integrated assessment model combining economic modeling with physical models of the space environment, we find the observed distribution of satellite orbits is well-explained by profit-maximizing satellite operator behavior. Furthermore, we find strong evidence that collision risk plays a key deterrent role. Finally, the observed location of the largest satellite constellation, Starlink, is consistent with a “sole owner” over particularly economically desirable altitudes.