nep-res New Economics Papers
on Resource Economics
Issue of 2005‒11‒05
two papers chosen by
Maximo Rossi
Universidad de la República

  1. Generating Value in Habitat-Dependent Fisheries: The Importance Of Fishery Management Institutions By Smith, Martin D.
  2. Trees and Extensive Forms By Carlos Alós-Ferrer; Klaus Ritzberger

  1. By: Smith, Martin D.
    Abstract: This paper considers the dynamic producer and consumer benefits from improving habitat that supports a commercial fishery under two different fishery management institutions. By coupling state equations that represent the effects of estuarine eutrophication on fish populations with a multispecies, two-patch spatial bioeconomic model that endogenizes output price through residual demand, the analysis computes welfare changes from a major reduction in nutrient pollution. This, in turn, reduces the incidence of hypoxia (low dissolved oxygen) and enhances prey availability. The North Carolina blue crab fishery serves as the empirical application, and water quality improvements pertain to the Neuse River Estuary and the contiguous Pamlico Sound. The analysis simulates dynamic rent and consumer surplus changes from a 30% decrease in nitrogen loading under both open access (the status quo) and a partially rationalized fishery (constant total effort). Producer benefits from the environmental quality change are higher for the rationalized fishery than for open access but are of the same order of magnitude for some parameter values. Consumer benefits are larger than producer benefits and are comparable across institutions. However, the total benefits from improving environmental quality are small relative to the benefits from rationalizing the fishery and leaving environmental quality the same.
    Keywords: ecosystem services, open access, bioeconomics, spatial fishery
    JEL: Q22 Q57 Q51 Q25
    Date: 2005
  2. By: Carlos Alós-Ferrer; Klaus Ritzberger
    Abstract: This paper addresses the question of what it takes to obtain a well-de?ned extensive form game. Without relying on simplifying ?niteness or discreteness assumptions, we characterize the class of game trees for which (a) extensive forms can be de?ned and (b) all pure strategy combinations induce unique outcomes. The generality of the set-up covers “exotic” cases, like stochastic games or decision problems in continuous time (di?erential games). We ?nd that the latter class ful?lls the ?rst, but not the second requirement.
    JEL: C72 D70
    Date: 2005–05

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