Fisheries II

# Fisheries II - Fisheries II Topics Berck's version of...

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Fisheries II

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Topics Berck’s version of Smith—a economicallization of the schaeffer model Homan’s regulated fishery Berck Costello Captured fishery Sanchirico patchy model Grafton, Kirkley, Squires almost ITQ Berck simplified extinction
Vernon Smith Model Version of Shaeffer Biology as usual Entry proportional to profit (number of boats) Output per boat function of price, stock of fish. (p = marginal cost) Standard IO model of firm and industry

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e.g. C(Q,x) = Q k /x MC = kQ k-1 /x Q= (px/k) 1/(k-1) Hence h = EQ = EX 1/(k-1) (p/k) 1/(k-1) dx/dt = f(x) - EX 1/(k-1) (p/k) 1/(k-1)
PB’s version of Smith 1 1 1 1 1 1 1 1 1 1 ( ) ( ) ( ) ( ) where is a constant of proportionality and FC are fixed costs k k k k k k k k P x f x Ex k x P E P x FC k k δ - - - - - - = - = - - &

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Externality We model the abundance externality as c/ x. Could be cx a(t) a < 0 Guess: If you could estimate this abs(a) would become smaller over time Lack of fish no longer makes it hard to catch the ones that still exist As a becomes small all the fish will be caught.
Could have the boats crowding each other, so more boats increases costs. E.g.

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## This note was uploaded on 08/01/2008 for the course ARE 262 taught by Professor Berck during the Spring '08 term at Berkeley.

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Fisheries II - Fisheries II Topics Berck's version of...

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