Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, held July 11-15, 2016 at Aberdeen Exhibition and Conference Center (AECC), Aberdeen, Scotland, UK.
Suggested Bibliographic Reference: Challenging New Frontiers in the Global Seafood Sector: Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 11-15, 2016. Compiled by Stefani J. Evers and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2016.
A two-species bioeconomic model is analyzed, but in contrast to most similar models, there is no biological interaction between the species, only economic. The interaction takes place in the market where the quantity of either species may affect the price of the other. Both the sole-owner and the open access case are considered. The effects of cross-price elasticities on the optimal steady state and the optimal paths in the sole-owner case are investigated both analytically and numerically. First, in the static analysis it is shown that whether cross-price elasticities have impact on the steady state or not, depends completely on the technology in the fishery (e.g. purse seine versus trawl). This is shown analytically. Secondly, in the dynamic analysis numeric methods must be resorted to, and it is shown that the cross-price elasticities have interesting effects on the time paths. More precisely, when cross-price elasticities are present and sufficiently high, the paths go from being monotonic to feature over- or undershooting. In the open access case, it is shown that cross-price elasticities typically have a conservational effect on the stocks.