Strong and weak rarity value in Small Fish Wars

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Abstract

We analyze the effects of rarity value on the economic and ecological sustainability of a natural resource. Rarity value means that under extreme scarcity of the resource unit profits increase 'explosively'. We focus on equilibrium behavior of very patient agents in a Small Fish War. In such a setting, agents interacting on a body of water have two options: they can fish with restraint or without. Fishing with restraint allows the fish stock to recover; fishing without yields higher immediate but lower future catches. We make a distinction between weak and strong rarity value. In the weak variant, equilibrium behavior induces high sustainable fish stocks and long-run yields. In the strong one, very high equilibrium rewards may be obtained by almost exhausting the resource, but more moderate equilibrium rewards are feasible without endangering sustainability.
Original languageEnglish
Number of pages20
Publication statusPublished - Jan 2012

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rarity
fish
fishing
sustainability
resource
natural resource
economics
water
fish stock

Keywords

  • IR-79520

Cite this

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