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Markov-Perfect Rent Dissipation in Rights-Based Fisheries


  • Valcu, Adriana
  • Weninger, Quinn


We 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.

Suggested Citation

  • Valcu, Adriana & Weninger, Quinn, 2013. "Markov-Perfect Rent Dissipation in Rights-Based Fisheries," Staff General Research Papers Archive 33820, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:33820

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    Cited by:

    1. Singh, Rajesh & Weninger, Quinn, 2017. "Spatial and seasonal equilibrium harvesting in quota-managed multispecies fisheries," ISU General Staff Papers 201708300700001033, Iowa State University, Department of Economics.

    More about this item


    Markov Perfect Nash equilibrium; individual transferable quotas; production externalities; resource rent.;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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