Document Type

Working Paper

Publication Date

8-24-2012

Working Paper Number

WP #12015, August 2012

Abstract

We develop a model of a multiple-species, stochastic harvesting technology. We examine harvesting behavior, at-sea discards and economic performance under various quota balancing mechanisms -- provisions intended to help fishermen match random catches with quota holdings -- in a multiple species fishery. We show that regulations that allow frictionless quota trading reduce at at-sea discards and increase economic performance. Regulations that offer fishermen flexibility to choose the mix of species landed do not eliminate discards, and can create unintended management problems. Our results provide new insights for improving the design quota-managed fisheries.

JEL Classification

Q2, Q22

File Format

application/pdf

Length

18 pages

File Function

Revised: August 24, 2012, "Preliminary and incomplete"

Included in

Economics Commons

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