No. 2/2007
RESTORING A FISH STOCK:
A DYNAMIC BANKRUPTCY PROBLEM
Elena Inarra and Anders Skonhoft
Abstract:
Total Allowable Catch (TAC) regulating schemes have been introduced
in most fisheries. TAC distribution following the Proportional Rule, based
on historical catches, implies that harvesters or vessel groups which
have captured more in the past and contributed to overfishing are getting
larger quotas than groups that have contributed less to overfishing. In
contrast to this rule a more egalitarian rule, the Constrained Equal Award
Rule, is proposed for distributing the TAC. Contingent upon the fishing
techniques used by the harvesters, it is demonstrated how the fish stock
recovery period, harvest and profitability may vary according to these
two rules.
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