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Abundance of Resources and Incentives for Collusion in Fisheries

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  • Juan Rosas-Munoz

    (Departamento de Economía y Finanzas, Universidad del Bío-Bío, Concepcion 4030000, Chile
    Environment for Development (EfD), Concepcion 4030000, Chile
    These authors contributed equally to this work.)

  • José Antonio Carrillo-Viramontes

    (Departamento de Economía y Finanzas, Universidad de Guanajuato, Guanajuato 36050, Mexico
    These authors contributed equally to this work.)

Abstract

The aim of this study is to explore theoretically the circumstances in which collusion can emerge between artisanal organizations and external agents. We also analyze theoretically how collusion can alter the sustainability equilibria of marine resources. In situations of incomplete information where external agents are not aware of the initial stock of resources, we observe how those agents decide whether to accept or reject offers of collusion from artisanal organizations. We find that collusion is more likely to occur when the resource is abundant than when resources are scarce, as in the latter case, the external consultant has to be more careful with the established quota so as not to deplete the resource. Further, we find that organizations are more impatient in proposing collusion when the resources are scarce.

Suggested Citation

  • Juan Rosas-Munoz & José Antonio Carrillo-Viramontes, 2022. "Abundance of Resources and Incentives for Collusion in Fisheries," Sustainability, MDPI, vol. 14(22), pages 1-20, November.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15083-:d:972600
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    References listed on IDEAS

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