15 - 02:21 Lawoffishing...

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02:21 Law of fishing Optimization function: catch fish now or wait (to get growth)? P = P(1+g)/(1+r)n Overall price of fish = P * fish’s growth discounted, accounting for n number of  other fishermen who can catch the fish first Not a matter of g vs. r, n is the key factor: it’s never worth waiting all fishermen fish as much as they can: fisheries got fished out too soon Regulations for Max Sustainable Yield: Fishery A can catch up to 1000, regardless of time, close Big fisheries would reach maximum in a day: not optimal/ too much competition  from fishermen fighting for shares: fisheries worth nothing due to cost expended  on resources Law of Rushing     Instead of MB = MC, this sets TB = TC so profit =0 Compete away all benefits
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AB=TB/E Average benefit = total benefit/ effort  Individual Transferable Quotes (ITQ): Fishing quota/ person with permit
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This note was uploaded on 01/26/2010 for the course ECON 330 at Yale.

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15 - 02:21 Lawoffishing...

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