Domestic and Foreign Effort Applied to a Fish Stock

This paper examines key implications of situations where a fish stock is exploited both by vessels from a proprietary nation and foreign units. In terms of rent maximization and capture through taxes on foreign effort or catch, the price received for the fish by foreigners compared to its domestic value is all-important. This also largely determines the domestic/foreign mix choice. Two main dynamic options for moving from an open-access situation to one of rent maximization, still with domestic and foreign units, and their implications under various discounts rates, are discussed in the second part of the paper.