A Note on ITQs and Optimal Investment
By Rögnvaldur Hannesson
ABSTRACT
This paper considers the incentives to invest under an ITQ management regime when labor is rewarded by the so-called share system. It is shown that the share system is likely to result in overinvestment under ITQs. Labor market power of crew, reflected in a high labor share of the catch, might correct for this and might even prevent excessive investment when there is competition for a total catch quota.
|
Instructions for authors
