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Rent-seeking and Quota Regulation of a Renewable Resource

  • Harald Bergland
  • Derek J. Clark
  • Pål Andreas Pedersen

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    The paper deals with rent-seeking behaviour among agents competing for future shares of a common renewable natural resource. Rent-seeking might become profitable when the agents expect that the distribution of the natural resource in future periods will be dependent on the agents' extraction of the resource in the past, even though high exploitation might reduce the stock that future individual quotas will be based upon. Whether aggressive rent-seeking behaviour by one agent will encourage other agents to rent-seek more, however, is generally found to be ambiguous.

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    File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0106.pdf
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    Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 0106.

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    Date of creation: Mar 2001
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    Handle: RePEc:ukc:ukcedp:0106
    Contact details of provider: Postal: School of Economics, University of Kent, Canterbury, Kent, CT2 7NP
    Phone: +44 (0)1227 827497
    Web page: http://www.kent.ac.uk/economics/

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    1. Hannesson, Rognvaldur, 1991. "From common fish to rights based fishing : Fisheries management and the evolution of exclusive rights to fish," European Economic Review, Elsevier, vol. 35(2-3), pages 397-407, April.
    2. Clark, Colin W. & Munro, Gordon R., 1975. "The economics of fishing and modern capital theory: A simplified approach," Journal of Environmental Economics and Management, Elsevier, vol. 2(2), pages 92-106, December.
    3. Hannesson, Rognvaldur, 1997. "Fishing as a Supergame," Journal of Environmental Economics and Management, Elsevier, vol. 32(3), pages 309-322, March.
    4. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    5. Munro, Gordon R. & Scott, Anthony D., 1985. "The economics of fisheries management," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 14, pages 623-676 Elsevier.
    6. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
    7. Fischer, Ronald D. & Mirman, Leonard J., 1996. "The Compleat Fish Wars: Biological and Dynamic Interactions," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 34-42, January.
    8. Boyce, John R, 1998. " Rent-Seeking in Natural Resource Quota Allocations," Public Choice, Springer, vol. 96(3-4), pages 271-94, September.
    9. Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier.
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