Abstract
| Original language | English |
|---|---|
| Number of pages | 20 |
| Publication status | Published - Jan 2012 |
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Keywords
- IR-79520
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Strong and weak rarity value in Small Fish Wars. / Joosten, Reinoud A.M.G.
2012.Research output: Working paper
TY - UNPB
T1 - Strong and weak rarity value in Small Fish Wars
AU - Joosten, Reinoud A.M.G.
PY - 2012/1
Y1 - 2012/1
N2 - 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.
AB - 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.
KW - IR-79520
M3 - Working paper
BT - Strong and weak rarity value in Small Fish Wars
ER -