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Excess Capacity and Capital Malleability in a Fishery with Myopic Expectations
journal contribution
posted on 2023-05-18, 14:42 authored by Steven RustSteven Rust, Sarah JenningsSarah Jennings, Satoshi YamazakiSatoshi YamazakiUnderstanding the process whereby fishing capital accumulates and excess capacity emerges, particularly in fisheries where incentives for race to fish and race to invest are present, and where capital is not perfectly malleable, remains an important topic. We develop a dynamic model, incorporating quasi-malleable capital, race to fish and invest behaviors and myopic expectations, in which the level of excess capacity is endogenously determined. We show the importance of capital malleability, and of other biological and economic conditions, in determining the existence and strength of persistent equilibrium excess capacity in the fishery. We also highlight a link between the state of the fishery at the time race behavior emerges and the resultant level of excess capacity. Our results have implications for both the management of excess capacity and the use of empirical measures of excess capacity as performance indicators in fisheries where race behaviors are present.
History
Publication title
Marine Resource EconomicsVolume
31Pagination
63-81ISSN
0738-1360Department/School
TSBEPublisher
University of Chicago PressPlace of publication
United StatesRights statement
© 2015 MRE FoundationRepository Status
- Open