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Reference-Dependent Preferences in Gulf of Mexico Shrimpers' Fishing Effort Decision

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  • Ran, Tao
  • Keithly, Walter R., Jr.
  • Yue, Chengyan

Abstract

This paper provides empirical evidence that reference-dependent preferences help to explain the amount of effort exerted by shrimpers in the Gulf of Mexico. Using survival analysis, the authors find that shrimpers tend to prolong their trip when their current trip revenue goal remains unattained. Furthermore, this tendency became more pronounced after 2001 in association with a significant decline in the shrimp price. This may partially explain the less obvious decrease in fleet effort vis-à-vis sharp decline in fleet size following the price change.

Suggested Citation

  • Ran, Tao & Keithly, Walter R., Jr. & Yue, Chengyan, 2014. "Reference-Dependent Preferences in Gulf of Mexico Shrimpers' Fishing Effort Decision," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-15, April.
    • Handle: RePEc:ags:jlaare:168257
    DOI: 10.22004/ag.econ.168257
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    References listed on IDEAS

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    9. Ran, Tao & Keithly, Walter R. & Kazmierczak, Richard F., 2011. "Location Choice Behavior of Gulf of Mexico Shrimpers under Dynamic Economic Conditions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(1), pages 29-42, February.
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    Cited by:

    1. Hammarlund, Cecilia, 2018. "A trip to reach the target? – The labor supply of Swedish Baltic cod fishermen," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 75(C), pages 1-11.

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