• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Department of Business and Management Science
  • Discussion papers (FOR)
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Department of Business and Management Science
  • Discussion papers (FOR)
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Analyzing risk of stock collapse in a fishery under stochastic profit maximization

Poudel, Diwakar; Sandal, Leif Kristoffer; Kvamsdal, Sturla Furunes
Working paper
Thumbnail
View/Open
dpfor2012-4.pdf (336.9Kb)
URI
http://hdl.handle.net/11250/164191
Date
2012-04
Metadata
Show full item record
Collections
  • Discussion papers (FOR) [556]
Abstract
In commercial fisheries, stock collapse is an intrinsic problem caused by overexploitation

or due to pure stochasticity. To analyze the risk of stock collapse, we apply a relatively

simple Monte Carlo approach which can capture complex stock dynamics. We use an

economic model with downward sloping demand and stock dependent costs. First, we

derive an optimal exploitation policy as a feedback control rule and analyze the effects of

stochasticity. We observe that the stochastic solution is more conservative compared to the

deterministic solution at low level of stochasticity. For moderate level of stochasticity, a

more myopic exploitation is optimal at small stock and conservative at large stock level.

For relatively high stochasticity, one should be myopic in exploitation. Then, we simulate

the system forward in time with the optimal solution. In simulated paths, some stock

recovered while others collapsed. From the simulation approach, we estimate the

probability of stock collapse and characterize the long term stable region.
Publisher
Norwegian School of Economics. Department of Finance and Management Science
Series
Discussion paper;2012:4

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit