Economics, Center for Agricultural and Rural Development
Journal or Book Title
Marine Resource Economics
First Page or Article ID Number
We present a general dynamic model of within-season harvesting competition in a fishery managed with individual transferable quotas. Markov-perfect equilibrium (MPE) 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. We offer new insights for designing rights-based programs capable of generating resource rent in marine fisheries.
MRE Foundation, Inc.
Valcu-Lisman, Adriana and Weninger, Quinn, "Markov-Perfect Rent Dissipation in Rights-Based Fisheries" (2013). Economics Publications. 62.