Chair of Innovation, Competition Policy and New Institutional Economics

2012-03

Number
2012-03
Authors
Martin F. Quaas, Till Requate
Title
Sushi or Fish Fingers? Seafood Diversity, Collapsing Fish Stocks, and Multi-species Fishery Management
Abstract 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 regulation, (iii) second-best optimal management of only one (or a few) species is less strict than socially optimal management of the same species. Finally, (iv) myopic regulation of one species, ignoring spill-overs to other species, may cause depletion of other stocks that would not be depleted under open access.

Keywords: marine biodiversity, fishery economics, product differentiation

JEL classification: Q22, Q57, Q21
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