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Strategic substitutes or complements? The game of where to fish

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  • Hicks, Robert L.
  • Horrace, William C.
  • Schnier, Kurt E.

Abstract

The “global game with strategic substitutes and complements” of Karp et al. (2007) is used to model the decision of where to fish. A complete information game is assumed, but the model is generalized to S>1 sites. In this game, a fisherman’s payoff depends on fish density in each site and the actions of other fishermen which can lead to congestion or agglomeration effects. Stable and unstable equilibria are characterized, as well as notions of equilibrium dominance. The model is applied to the Alaskan flatfish fishery by specifying a strategic interaction function (response to congestion) that is a non-linear function of the degree of congestion present in a given site. Results suggest that the interaction function may be non-monotonic in congestion.

Suggested Citation

  • Hicks, Robert L. & Horrace, William C. & Schnier, Kurt E., 2012. "Strategic substitutes or complements? The game of where to fish," Journal of Econometrics, Elsevier, vol. 168(1), pages 70-80.
    • Handle: RePEc:eee:econom:v:168:y:2012:i:1:p:70-80
    DOI: 10.1016/j.jeconom.2011.09.007
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    References listed on IDEAS

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    1. John Lynham, 2017. "Identifying Peer Effects Using Gold Rushers," Land Economics, University of Wisconsin Press, vol. 93(3), pages 527-548.
    2. Brown, Zachary S. & Connor, Lawson & Rejesus, Roderick M. & Yorobe, Jose M., 2021. "Landscape-level feedbacks in the demand for transgenic pesticidal corn in the Philippines," Ecological Economics, Elsevier, vol. 180(C).
    3. Mariétou H. Ouayogodé & Kurt E. Schnier, 2021. "Patient selection in the presence of regulatory oversight based on healthcare report cards of providers: the case of organ transplantation," Health Care Management Science, Springer, vol. 24(1), pages 160-184, March.
    4. Brown, Zachary & Connor, Lawson & Rejesus, Rod & Jose, Yorobe, 2016. "Estimation of Spillover Effects from Large Scale Adoption of Transgenic (Bt) Corn in the Philippines," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 239267, Agricultural and Applied Economics Association.
    5. Kurt E. Schnier & Ronald G. Felthoven, 2011. "Accounting for Spatial Heterogeneity and Autocorrelation in Spatial Discrete Choice Models: Implications for Behavioral Predictions," Land Economics, University of Wisconsin Press, vol. 87(3), pages 382-402.
    6. Lee, Kyounghun & Oh, Frederick Dongchuhl, 2021. "Public information and global games with strategic complements and substitutes," Economics Letters, Elsevier, vol. 199(C).

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