Optimal Fleet Size When National Quotas Can Be Traded

Abstract

Assuming stochastic quotas for a fish stock that is shared between two nations, we find the optimal fleet size for one of them by maximizing expected profit under the assumption that national quotas can be traded and that stable national quotas is a political goal. As an example we use the Norwegian purse seiner fleet and the summer capelin fishery in the Barents Sea.Environmental Economics and Policy, International Development, International Relations/Trade, Resource /Energy Economics and Policy,