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Efficiency of individual Transferable Quotas (Itqs) When Fishers Are Able to Choose Vessel Sizes: An Experimental Approach

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  • Employing an experimental approach, we examine whether the efficiency of fishery management can be achieved under Individual Transferable Quotas regimes. We analyze the situation in which subjects can choose one from two vessel types: a large-scale or a small-scale. The fixed cost for the large-scale is higher than that for the small-scale, whereas the variable cost for the large-scale is lower. We find that the average trading price converges to the theoretical equilibrium price. We also find that vessels are chosen rationally, in the sense that the higher is the trading prices in the past, the less incentive fishers have to invest in large-scale vessels. Moreover, quota prices in the first period could influence both the quota prices in the ensuing periods.
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  • Tanaka, Kenta, Keisaku Higashida and Shunsuke Managi. 2010. Efficiency of individual Transferable Quotas (Itqs) When Fishers Are Able to Choose Vessel Sizes: An Experimental Approach. 12 pages. In: Proceedings of the Fifteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 13-16, 2010, Montpellier, France: Economics of Fish Resources and Aquatic Ecosystems: Balancing Uses, Balancing Costs. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2010.
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  • US National Oceanic and Atmospheric Administration (NOAA) Fisheries Division, Agence Française de Développement, Ministère de l’Enseignement Supérieur et de la Recherche, Ministère de L’Alimentation de L’Agriculture et de la Pêche, Ministère de l’Énergie, du Développement Durable et de la Mer, La Région Languedoc Rouslilon, Département Hérault, Montpellier Agglomèration, The Department of Fisheries and Oceans, Canada, and AquaFish Collaborative Research Support Program (CRSP).
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