Information Sharing and Cooperative Search in Fisheries

We present a dynamic game of search and learning about the productivity of com-peting fishing locations. Perfect Bayesian Nash equilibrium search patterns for non-cooperating fishermen and members of an information sharing cooperative are com-pared with first-best outcomes. Independent fishermen do not internalize the full valueof information, and do not replicate first-best search. A fishing cooperative faces afree-riding problem, as each coop member prefers that other members undertake costlysearch for information. Pooling contracts among coop members may mitigate, butare not likely to eliminate free riding. Our results explain the paucity of informationsharing in fisheries and suggest regulators use caution in advocating cooperatives as asolution to common pool ineffciencies in fisheries.�search; Information sharing; Dynamic Bayesian game; Fishing cooperative

A Hedonic Analysis of the Impact of Marine Aquaculture on Coastal Housing Prices in Maine

Converting coastal waters to farmed production of seafood may generate conflicts with other resource users. This study explores the impact of marine aquaculture development on coastal homeowners. Using single-family home sales from 2012–2014 and spatial data on coastal aquaculture activity, we employ hedonics to assess the impacts of mariculture development in three study areas of Maine, USA. Our results suggest modest impacts on residential property values with significant spatial variation across study areas. This spatial variation represents a challenge for managers and highlights the potential benefits from coordinating the development of aquaculture to balance resource users\u27 objectives with industry growth

The Influence of Trust and Attitudes on the Purchase Frequency of Organic Produce

Growth in organic food sales is mainly due to consumers becoming more aware of health issues and environmental concerns. Understanding the drivers of organic consumption is crucial to predict future market outcomes. In this analysis, the authors expand previous research by including general and institutional trust variables in addition to consumer attitudes to examine organic food purchases. Food production is unobservable and hence, consumers need to exhibit trust with respect to organic production and certification. A bivariate ordered probit model applied to U.S. survey data confirms that organic purchases are determined by health, nutrition, and taste. In some cases, general trust and trust in media are statistically significant. Trust in institutions that are involved in the organic certification process is not statistically significant. A hierarchical cluster analysis grouping consumers based on trust and attitudes shows that (dis)trust in the organic certification and supply chain does not hinder organic food market growth

Spatial dynamics of Maine lobster landings in a changing coastal system

Continued warming of oceans has caused global shifts in marine species distributions. This can result in changes in the spatial distribution of landings and have distributional impacts on marine resource-dependent communities. We evaluated the spatial dynamics of American lobster (Homarus americanus) landings in coastal Maine, which supports one of the most valuable U.S. fisheries. We coupled a bioclimate envelope model and a generalized additive model to project spatial dynamics of lobster landings under possible climate scenarios. This coupled model was then used to forecast future lobster habitat suitability based on IPCC RCP climate scenarios and predict distributions of fishery landings from this projected lobster habitat suitability. The historical spatial distribution of fishery landings shows the highest proportional landings in Maine’s Southern (southwest) regions. The current distribution of landings shows higher proportional landings in Downeast (northeast) regions with the highest proportional landings in Midcoast (middle) regions. Our results suggest that while the proportion of landings in each zone will remain stable, changes in habitat suitability in the spring and fall will reduce total landings. Future habitat suitability is projected to decrease in spring but increase in fall in Downeast areas. Downeast landings are projected to decrease in the next 30 years, then increase over the subsequent 80 years, depending on RCP scenarios and abundance regimes. Midcoast landings are projected to decrease while Southcoast landings are expected to stay constant. This study develops an approach to link climate change effects to fishery landings. These findings have long-term implications for sustainable, localized management of the Maine lobster fishery in a changing climate

Measuring the impact of pollution closures on commercial shellfish harvest: The case of soft-shell clams in Machias Bay, Maine

Temporary closures of polluted coastal waters to shellfish harvesting protect human health but also generate broad socioeconomic impacts on rural, fishing-dependent communities. Improved understanding of these impacts could help coastal managers prioritize investments to protect water quality and mitigate the effects of coastal pollution. Using a regression model of monthly landings, we explore the impact of temporary closures on the commercial harvest of soft-shell clams (Mya arenaria) in the Machias Bay region of Maine (USA). We find that economic losses are significant and depend heavily on tidal activity, and the size, frequency and timing of closures. Over the nine-year sample period (2001–2009), temporary pollution closures contributed to the loss of $3.6 million in forgone revenue (2014 dollars), approximately 27.4$2.0 million) with the largest occurring during the peak clamming season (May–August). Our results highlight the variability of the impacts of closures and the information burden for efficient management of shellfish areas and coastal waters. By strategically reducing pollution, managers could limit public health risks, avoid destabilizing harvesting and revenue, and bolster the resilience of fishing communities

The Lawful Acquisition and Exercise of Monopoly Power and its Implications for the Objectives of Antitrust

The antitrust laws of the United States have, from their inception, allowed firms to acquire significant market power, to charge prices that reflect that market power, and to enjoy supra-competitive returns. This article shows that this policy, which was established by the U.S. Congress and affirmed repeatedly by the U.S. courts, reflects a tradeoff between the dynamic benefits that society realizes from allowing firms to secure significant rewards, including monopoly profits, from making risky investments and engaging in innovation; and the static costs that society incurs when firms with significant market power raise price and curtail output. That tradeoff results in antitrust laws that allow competition in the market and for the market, even if that rivalry results in a single firm emerging as a monopoly, but that prevent firms from engaging in practices that go out of bounds. The antitrust laws ultimately regulate the boundaries of the game of competition. Three implications follow. First, the antitrust laws and intellectual property laws are based on similar policy tradeoffs between static and dynamic effects. Second, the antitrust rules have, all along, been based on this tradeoff and not on the effects of business practices on static consumer welfare in relevant antitrust markets. Third, one unintended consequence of the increased role of economics in antitrust analysis is to overemphasize static considerations which the almost the sole focus of the economics literature that courts and competition authorities consider