Markov-Perfect Rent Dissipation in Rights-Based Fisheries
AbstractWe present a general, dynamic model of within-season harvesting competition in a fishery managed with individual transferable quotas. Markov-Perfect equilibrium harvesting and quota purchase strategies are derived using numerical collocation methods. We identify rent loss caused by a heterogeneous-in-value fish stock, congestion on the fishing ground, revenue competition and stock uncertainty. Our results show that biological, technological and market conditions under which rents will be dissipated in a standard individual transferable quota program are fairly special. These fi ndings provide new insights for designing rights-based programs capable of generating resource rent in marine fisheries.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 33820.
Date of creation: 24 May 2011
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Markov Perfect Nash equilibrium; individual transferable quotas; production externalities; resource rent.;
Find related papers by JEL classification:
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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- Cancino, Jose P. & Uchida, Hirotsugu & Wilen, James E., 2007. "TURFs and ITQs: Collective vs. Individual Decision Making," Marine Resource Economics, Marine Resources Foundation, vol. 22(4).
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