Unformatted text preview: of ﬁsh, where H is the total period 1 harvest and K t is the stock of ﬁsh in period t . Let h i ∈ [ 0,1 ] be the harvest by ﬁsher i in period 1. Harvesting ﬁsh is costless. In days 2, all ﬁshers harvest equal shares of the second period stock. If the ﬁshers discount day 2 at the market rate of interest, r , and the price of ﬁsh is one, then a proﬁt maximizing ﬁsher chooses h i to solve max h i h i + 1 N K 1N ∑ j = 1 h j ! 0.5 1 1 + r (a) Solve for the ﬁsher’s choice of h i . (b) Does it make sense for a single individual to buy the whole ﬁshery? 1...
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 Fall '10
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 Debt, Interest, Welfare Theorems, Matt Turner

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