RT Journal Article
SR Electronic
T1 The Effects of ITQ Management on Fishermen’s Welfare When the Processing Sector Is Imperfectly Competitive
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 470
OP 484
DO 10.3368/le.85.3.470
VO 85
IS 3
A1 McEvoy, David M.
A1 Brandt, Sylvia
A1 Lavoie, Nathalie
A1 Anders, Sven
YR 2009
UL http://le.uwpress.org/content/85/3/470.abstract
AB In this paper we use a general model of imperfect competition to predict welfare changes within an open-access fishery after it transitions to individual transferable quota (ITQ) management. Although related research has explored the effects of market power in the harvesting sector on ITQ performance, none has considered the implications of an imperfectly competitive processing sector. Addressing this question, we find that although fishermen should expect to gain from ITQs under perfect competition, they may suffer welfare losses if the processing sector is imperfectly competitive. (JEL Q22, Q28)