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Is the behavior of fishers rational under Individual Transferable Quotas (ITQs) regimes? An Experimental Approach

Author

Listed:
  • Keisaku Higashida

    (School of Economics, Kwansei Gakuin University)

  • Kenta Tanaka

    (Graduate School of Environmental Studies, Tohoku University)

  • Shunsuke Managi

    (Graduate School of Environmental Studies, Tohoku University)

Abstract
Marine resource depletion is a critical concern for humankind. Individual Transferable Quota (ITQ) regimes are among the most effective measures to tackle this problem. Employing an experimental approach, this study examines the rationality of fishers under an ITQ regime. In particular, this study focuses on the case where fishers can change their own vessel scales in the beginning of each period in each experiment. We find that the higher the quota price is, the more irrationally fishers behave. Moreover, vessel scales and initial allocations can influence the rationality of fishers.

Suggested Citation

  • Keisaku Higashida & Kenta Tanaka & Shunsuke Managi, 2011. "Is the behavior of fishers rational under Individual Transferable Quotas (ITQs) regimes? An Experimental Approach," Discussion Paper Series 73, School of Economics, Kwansei Gakuin University, revised Aug 2011.
    • Handle: RePEc:kgu:wpaper:73
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp73.pdf
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    References listed on IDEAS

    as
    1. Newell, Richard G. & Sanchirico, James N. & Kerr, Suzi, 2005. "Fishing quota markets," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 437-462, May.
    2. Eythórsson, Einar, 2000. "A decade of ITQ-management in Icelandic fisheries: consolidation without consensus," Marine Policy, Elsevier, vol. 24(6), pages 483-492, November.
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    4. Tom Kompas & Tuong Che, 2005. "Efficiency Gains and Cost Reductions from Individual Transferable Quotas: A Stochastic Cost Frontier for the Australian South East Fishery," Journal of Productivity Analysis, Springer, vol. 23(3), pages 285-307, July.
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    6. Anderson, Christopher M., 2004. "How Institutions Affect Outcomes in Laboratory Tradable Fishing Allowance Systems," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(2), pages 1-16, October.
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    8. Tom Kompas & Tuong Nhu Che, 2003. "Efficiency Gains and Cost Reductions from Individual Transferable Quotas: A Stochastic Cost Frontier for," International and Development Economics Working Papers idec03-6, International and Development Economics.
    9. Anderson, Christopher M., 2004. "How Institutions Affect Outcomes in Laboratory Tradable Fishing Allowance Systems," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(2), pages 193-208, October.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Individual Transferable Quotas (ITQs); experiment; rational behavior;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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