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A Corporate-Crime Perspective on Fisheries: Liability Rules and Non-Compliance

Jensen, Frank; Nøstbakken, Linda
Working paper
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URI
http://hdl.handle.net/11250/296887
Date
2015-08
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  • Discussion papers (SAM) [608]
Abstract
The existing fisheries economics literature analyzes compliance problems by treating the

fishing firm as one cohesive unit, but in many cases, violations are committed by agents acting on behalf

of a firm. To account for this, we analyze the principal-agent relationship within the fishing firm. In the

case where the firm directly benefits from illegal fishing, the firm must induce its crew to violate

regulations through the incentive scheme. Within this framework, we analyze how the allocation of

liability between fishing firms and crew affects quota violations and the ability to design a socially

efficient fisheries policy. We show that without wage frictions, it does not matter whom is held liable.

However, under the commonly used share systems of remuneration, crew liability generally yields a

more efficient outcome than firm liability. Furthermore, asset restrictions may affect the outcome under

various liability rules.
Publisher
SAM
Series
Discussion paper;20/15

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