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Overcoming the common pool problem through voluntary cooperation: the rise and fall of a fishery cooperative

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  • Robert T. Deacon
  • Dominic P. Parker
  • Christopher Costello
Abstract
We analyze a seldom used, but highly promising form of rights-based management over common pool resources that involves the self-selection of heterogeneous fishermen into sectors. The fishery management regime assigns one portion of an overall catch quota to a voluntary cooperative, with the remainder exploited as a commons by those choosing to fish independently. Data from an Alaska commercial salmon fishery confirm our model's key predictions, that the co-op would facilitate the consolidation of fishing effort, coordination of harvest activities, sharing of information and provision of shared infrastructure. We estimate that the resulting rent gains were at least 25%. A lawsuit filed by two disgruntled independents led to the co-op's demise, an outcome also predicted by our model. Our analysis provides guidance for designing fishery reform that leads to Pareto improvements for fishermen of all skill levels, which suggests a structure that enables reform without losers.

Suggested Citation

  • Robert T. Deacon & Dominic P. Parker & Christopher Costello, 2010. "Overcoming the common pool problem through voluntary cooperation: the rise and fall of a fishery cooperative," NBER Working Papers 16339, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:16339
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    Cited by:

    1. Corbett A. Grainger & Christopher Costello, 2011. "The Value of Secure Property Rights: Evidence from Global Fisheries," NBER Working Papers 17019, National Bureau of Economic Research, Inc.
    2. Coglan, Louisa & Pascoe, Sean, 2015. "Corporate-cooperative management of fisheries: A potential alternative governance structure for low value small fisheries?," Marine Policy, Elsevier, vol. 57(C), pages 27-35.
    3. Terry L. Anderson & Ragnar Arnason & Gary D. Libecap, 2010. "Efficiency Advantages of Grandfathering in Rights-Based Fisheries Management," NBER Working Papers 16519, National Bureau of Economic Research, Inc.
    4. Kathleen Segerson, 2013. "Voluntary Approaches to Environmental Protection and Resource Management," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 161-180, June.

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    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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