IDEAS home Printed from https://ideas.repec.org/a/wsi/igtrxx/v25y2023i03ns0219198923400017.html
   My bibliography  Save this article

Tipping and strong rarity value in a stochastic fishery game

Author

Listed:
  • Reinoud Joosten

    (Financial Engineering (FE), Faculty of Behavioural, Management and Social Sciences (BMS), University of Twente, POB 217, 7500 AE Enschede, The Netherlands)

  • Rogier Harmelink

    (Industrial Engineering & Business Information Systems (IEBIS), Faculty of Behavioural, Management and Social Sciences (BMS), University of Twente, POB 217, 7500 AE Enschede, The Netherlands)

Abstract

Strong rarity value is the phenomenon that an increase in scarcity of a species (of plants or animals) leads to a price increase which more than compensates increased search costs and lower numbers found or caught. Tipping here is a regime shift moving the system into a low resource-level state from which it is impossible to escape unless measures to restore the resource are taken for a long period of time. We engineer a model in which agents wishing to maximize their limiting average rewards have two choices at every stage of the play, restraint or no-restraint (“overfish†). Overfishing damages the resource, causes tipping and induces scarcity which in turn creates rarity value. We find that Pareto-efficient equilibrium outcomes for very patient agents may require substantial overexploitation of the resource inducing serious threats to its sustainability. However, equilibrium behavior yields a sufficiently rich scheme of outcomes that leave room for viable compromises between ecologically and economically maximalistic policies.

Suggested Citation

  • Reinoud Joosten & Rogier Harmelink, 2023. "Tipping and strong rarity value in a stochastic fishery game," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 25(03), pages 1-34, September.
    • Handle: RePEc:wsi:igtrxx:v:25:y:2023:i:03:n:s0219198923400017
    DOI: 10.1142/S0219198923400017
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219198923400017
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219198923400017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:igtrxx:v:25:y:2023:i:03:n:s0219198923400017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/igtr/igtr.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.