Two agents possess the fishing rights to a lake. Each period they have two options, to catch without restraint, e.g., to use a fine-mazed net, or to catch with some restraint, e.g., to use a wide-mazed net. The use of a fine-mazed net always yields a higher immediate catch than the alternative....

We present a model of a multi-species fishery and show that (i) consumer preferences for seafood diversity may trigger a sequential collapse of fish stocks under open-access fishery, (ii) the stronger the preferences are for diversity the higher is the need for coordinated multi-species...

This paper develops linear quadratic robust control theory for a class of spatially invariant distributed control systems that appear in areas of economics such as New Economic Geography, management of ecological systems, optimal harvesting of spatially mobile species, and the like. Since this...

Individuals extracting common-pool resources in the field sometimes form output-sharing groups to avoid costs of crowding. In theory, if the right number of groups forms, Nash equilibrium aggregate effort should fall to the socially optimal level. Whether individuals manage to form the efficient...

Fishing resources are classified as a “commons good,” that is they are highly non-excludable and rival. This characteristic leads to the so-called tragedy of the commons, the tendency for a good that has no price to be used until its marginal benefit falls to zero. In this paper, a win-win...

We consider a framework featuring a central bank, private and financial agents as well as a financial market. The central bank's objective is to maximize a functional, which measures the classical trade-off between output and inflation plus income from the sales of inflation linked calls minus...

We present a continuous, nonlinear, stochastic and dynamic model for capital investment in the exploitation of a renewable resource. Both the resource stock and capital stock are treated as state variables. The resource owner controls fishing effort and the investment rate in an optimal way....

Recent supply shocks in the Gulf of Mexico - including hurricanes, the Deepwater Horizon oil spill, and the seasonal appearance of a large dead zone of low oxygen water (hypoxia) - have raised concerns about the economic viability of the U.S. shrimp fishery. The ability for U.S. shrimpers to...

Economists have long promoted fishery rationalization programs, but ITQs may fail to address the ecological consequences of fishing. Of particular concern is that economic incentives to harvest larger fish (due to size-dependent pricing or quota-induced discarding) can destabilize fish...

In January 2009 a new management regime of individual vessel quotas (IVQs) was put in force in the world's largest fishery, the Peruvian anchovy fishery. Until 2009, the fishery was managed by a regulated open access system with clear symptoms of the race for fish. We argue that the new regime...