Measuring the Dynamic Efficiency Costs of Common-Pool Resource Exploitation
By Ling Huang, Martin D. Smith. 2010
126 citations recorded by the source corpus.
We conduct the first empirical investigation of common-pool resource users' dynamic and strategic behavior at the micro level using real-world data. Fishermen's strategies in a fully dynamic game account for latent resource dynamics and other players' actions, revealing the profit structure of the fishery. We compare the fishermen's actual and socially optimal exploitation paths under a time-specific vessel allocation policy and find a sizable dynamic externality. Individual fishermen respond to other users by exerting effort above the optimal level early in the season. Congestion is costly instantaneously but is beneficial in the long run because it partially offsets dynamic inefficiencies. (JEL D24, Q21, Q22)
Subfields: Management Information Systems, Management Science and Operations Research, Marketing
View Paper: https://www.semanticscholar.org/paper/e8b66cc2ffc23879386720ab34bb599a7c20550a
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In Management Science and Operations Research
In Marketing
Citations in the corpus
- The Cost of Lice: Quantifying the Impacts of Parasitic Sea Lice on Farmed Salmon (2017, background): “The fisheries literature empirically demonstrates that such interactions can be important (Huang and Smith 2014).”