Fishbanks

1
Fishbanks
2
(No Transcript)
3
(No Transcript)
4
(No Transcript)
5
Fishbanks rules

• Decision 1 Get additional ships?
• Buy ships from other fishing companies
• Buy in auctions
• Order ships to be built
• Decision 2 . How to divide ships among
• Coastal fishing area
• Deep fishing area
• Harbor

6
Income
Expenses

• Selling your fish catch at 20 per fish
• Selling your ships to other companies at
  negotiated price
• Earn 10 interest on your bank account when bank
  balancegt0

• Buying ships
• Ordering new ships 300
• Cost of operating ships in fishing areas or
  harbor
• 15 interest on loans when bank balancelt0

7
(No Transcript)
8
(No Transcript)
9
(No Transcript)
10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
Fishbanks causes of collapse?

• Misinformation issues
• Difficulty to assess the evolution of the fish
  population
• assumptions of stability
• delay in control response
• unfeasibility of unilateral control measures
• lack of trust?

15
The tragedy of the commons (Biologist Garrett
Harding 1968)

• On the pasture open to all, each herdsman seeks
  to maximize his gain, so each of them thinks
  about his cost and benefit of adding one more
  animal to his herd.
• Each of them concludes that he will get the full
  profit from selling the additional animal, but he
  will share only part of the cost of overgrazing.
• So, thinking rationally, each herdsman will
  continuously increase the number of animals until
  tragedy
• When rational agents use a shared resource (a
  commons) near its capacity, the resource is
  doomed

16
How to avoid the tragedy of the commons?

• Information
• Need a to have information about resource
  depletion
• Criterion of judgment on common resource versus
  private benefit. Weighting system.
• Coercion
• Free riding issue even if everyone agrees with
  objective of common resource protection
• Which institution should coerce?

17
Climate change and the tragedy of the global
common

• Information
• Scientific uncertainty
• Coercion
• Coercion difficult to achieve because of nation
  states sovereignty
• Administrative system?
• 1997 Kyoto protocol difficult to enforce
• a set of binding emissions targets for developed
  nations.
• specific limits vary from country to country,
• 8 below 1990 emissions levels for the EU, 7 for
  the U.S., 6 for Japan.