Fishery Fee and Tax Rate in an Oligopoly Industry with Entry and Exit
- 1
- 2
- 3
- 4 Division of Economics, Nanyang Technological University, Nanyang Ave, Singapore
Abstract
Over the last two decades, fisheries sector has been playing an important role in the global economy as a vibrant sector. By looking into the interactions among natural resources, human beings and government, this paper first briefly examines the issue of complicated conflicts in fisheries together with its influence on fisheries management. Under the assumption that the fishing resources will not be exhausted, this paper further reveals the particular conflicts between economic performance and community welfare by modelling the strategic interaction amongst the government and fishing firms based on the two stage non-cooperative game theory. With a dynamic model enclosed, this paper demonstrates with how the government establishes the fishing fee rate to achieve its primary goal and how the fishing firms react to the policy in each scenario. In the end, it concludes with some brief suggestions regarding policy-making for future work priorities. Although fishery industry is used as an example in this article, our main results, however, can be applied to any industries of oligopoly competitions with entry and exit.
- Food and Agriculture Organization of the United Nations, “Integrated Coastal Area Management and Agriculture, Forestry and Fisheries,” FAO Guidelines, Rome, 1998.
- A. T. Charles, “Fishery Conflicts: A United Framework,” Marine Policy, Vol. 16, No. 5, 1992, pp. 379-393. doi:10.1016/0308-597X(92)90006-B
- Agriculture, Fisheries and Conservation Department, “Hong Kong Annual Report 1999,” 1999. http://www.yearbook.gov.hk/1999/eng/08/08_00.htm
- C. Chu, “Thirty Years Later: The Global Growth of ITQs and Their Influence on Stock Status in Marine Fisheries,” Fish and Fisheries, Vol. 10, No. 2, 2009, pp. 217-230. doi:10.1111/j.1467-2979.2008.00313.x
- D. R. Luce and H. Raiffa, “Games and Decisions: Introduction and Critical Survey,” Wiley, New York, 1957.
- F. H. Clarke and G. R. Munro, “Coastal States, Distant Water Fishing Nations and Extended Jurisdiction: A Principal-Agent Analysis,” Natural Resource Modeling, Vol. 2, No. 1, 1987, pp. 81-107.
- F. H. Clarke and G. R. Munro, “Coastal States and Distant Water Fishing Nations: Conflicting Views of the Future,” Natural Resource Modeling, Vol. 5, No. 3, 1991, pp. 534-569.
- N. Raissi, “Features of Bioeconomics Models for the Optimal Management of a Fishery Exploited by Two Different Fleets,” Natural Resource Modeling, Vol. 14, No. 2, 2001, pp. 287-310. doi:10.1111/j.1939-7445.2001.tb00060.x
- D. Levhari and L. J. Mirman, “The Great Fish War: An Example Using a Dynamic Cournot-Nash Solution,” Bell Journal of Economics, Vol. 11, No. 1, 1980, pp. 322-334. doi:10.2307/3003416
- R. D. Fischer and L. J. Mirman, “The Compleat Fish Wars: Biological and Dynamic Interactions,” Journal of Environmental Economics and Management, Vol. 30. No. 1, 1996, pp. 34-42. doi:10.1006/jeem.1996.0003
- E. Dockner, G. Feichtinger and A. Mehlmann, “Non-Cooperative Solutions for a Differential Game Model of Fishery,” Journal of Economic Dynamics and Control, Vol. 13, No. 1, 1989, pp. 1-20. doi:10.1016/0165-1889(89)90008-0
- G. Ruseski, “International Fish Wars: The Strategic Roles for Fleet Licensing and Effort Subsidies,” Journal of Environmental Economics and Management, Vol. 36, No. 1, 1998, pp. 70-88. doi:10.1006/jeem.1998.1038
- Y. Wachsman, “A Model of Fishing Conflicts in Foreign Fisheries,” Working Paper No.02-16, 2002.
- M. B. Schaefer, “Some Considerations of Population Dynamics and Economics in Relation to the Management of Marine Fisheries,” Journal of Fisheries Research Board of Canada, Vol. 14, 1957, pp. 669-681. doi:10.1139/f57-025