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Is the behavior of fishers rational under Individual Transferable Quotas (ITQs) regimes? An Experimental Approach

Author

Listed:
  • Keisaku Higashida

    (School of Economics, Kwansei Gakuin University)

  • Kenta Tanaka

    (Graduate School of Environmental Studies, Tohoku University)

  • Shunsuke Managi

    (Graduate School of Environmental Studies, Tohoku University)

Abstract

Marine resource depletion is a critical concern for humankind. Individual Transferable Quota (ITQ) regimes are among the most effective measures to tackle this problem. Employing an experimental approach, this study examines the rationality of fishers under an ITQ regime. In particular, this study focuses on the case where fishers can change their own vessel scales in the beginning of each period in each experiment. We find that the higher the quota price is, the more irrationally fishers behave. Moreover, vessel scales and initial allocations can influence the rationality of fishers.

Suggested Citation

  • Keisaku Higashida & Kenta Tanaka & Shunsuke Managi, 2011. "Is the behavior of fishers rational under Individual Transferable Quotas (ITQs) regimes? An Experimental Approach," Discussion Paper Series 73, School of Economics, Kwansei Gakuin University, revised Aug 2011.
    • Handle: RePEc:kgu:wpaper:73
    as

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    References listed on IDEAS

    as
    1. Newell, Richard G. & Sanchirico, James N. & Kerr, Suzi, 2005. "Fishing quota markets," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 437-462, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Individual Transferable Quotas (ITQs); experiment; rational behavior;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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