Individual Discount Rate and Regulatory Compliance in a Developing Country Fishery

Abstract

Studies on compliance with fishing regulations have looked at fishery crimes for which the offender faces a one-period decision problem of maximizing an expected utility. Moreover, the returns to the crimes are uncertain because the offender may lose them if caught. This paper extends these models by considering a fishery crime that generates flow of returns until the offender is caught and then punished. Consequently we incorporate into the existing model, the influence of dynamic deterrence in which the discount rate affects violation levels. The predictions of the model are tested on data from an artisanal fishery in Ghana