New Insights from the Canonical Fisheries Model
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Nævdal, Eric, Anders Skonhoft
Number in series: 3
We analyse the standard optimal control fishery model and derive some novel results. We show that as long as it is not optimal to let the stock become extinct, there will always be an interval with low stock sizes where it is optimal not to harvest. This result does depend on any assumption that marginal harvesting cost per unit increases with decreasing stock size. This result is then used to prove that weak conditions the shadow price on the fish stock always goes to infinity as the stock approaches zero. The results are generalized to age structured models.
Project:Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 196199
Frisch prosjekt: 3172 - Managing Thresholds and Uncertainty in Resource Economics