Abstract:
Ex-vessel price formation of fish in Iceland has been a stumbling stone within the fisheries for a long period of
time. Fish as a raw material for processing has been sold either in direct sales or through auction markets leading to
different prices. In many cases direct sales leads to considerably lower prices then the outcome on the auction markets. In
this context it is attempted in this paper to cast some light on this issue by analysing the development of the price systems
applied in the industry. Furthermore, we apply theoretical methods of contract theory to gain understanding of how the
share system and contracts between owners of vessels and owners of on-shore facilities might influence the development of
ex-vessel price of fish in Iceland. It is also discussed what problem of mesurement one has to tackle with when conducting
empirical investigation of data regarding price of fish.
