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Sharing The Benefits Of Cooperation In The Norwegian Spring-Spawning Herring Fishery

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  • MARKO LINDROOS

    (Department of Economics and Management, P.O.Box 27, 00014 University of Helsinki, Finland)

Abstract

The purpose of this paper is to study the sharing of cooperative benefits between the potential fishing nations of Norwegian spring-spawning (or Atlanto-Scandian) herring (NSSH). I study a three-player coalitional game where Shapley value is used as a solution concept. The results show that full cooperation is a stable solution of the game, that is, no country finds it optimal to leave the grand coalition. However, it is further shown how full cooperation may become unstable under biological uncertainty. Therefore, I propose a simple mechanism to alleviate the problem. The instability created by biological uncertainty can be significantly reduced when simple modified cooperative strategies are applied. By introducing a safe minimum biological level for the fish stock (SMBL) below which no harvesting takes place and also changing gear selectivities, instability reduces a great deal. However, a safe minimum economic level (SMEL) when there may be perfect stability is shown to be higher than the SMBL.

Suggested Citation

  • Marko Lindroos, 2004. "Sharing The Benefits Of Cooperation In The Norwegian Spring-Spawning Herring Fishery," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 35-53.
    • Handle: RePEc:wsi:igtrxx:v:06:y:2004:i:01:n:s021919890400006x
    DOI: 10.1142/S021919890400006X
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    References listed on IDEAS

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    1. Nick Hanley & Henk Folmer (ed.), 1998. "Game Theory and the Environment," Books, Edward Elgar Publishing, number 1083.
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    Citations

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    Cited by:

    1. Michael Finus & Raoul Schneider & Pedro Pintassilgo, 2011. "The Incentive Structure of Impure Public Good Provision – The Case of International Fisheries," Discussion Papers 1103, University of Exeter, Department of Economics.
    2. Pedro Pintassilgo & Lone Kronbak & Marko Lindroos, 2015. "International Fisheries Agreements: A Game Theoretical Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 689-709, December.
    3. Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
    4. Doyen, Luc & Péreau, Jean-Christophe, 2012. "Sustainable coalitions in the commons," Mathematical Social Sciences, Elsevier, vol. 63(1), pages 57-64.
    5. McWhinnie, Stephanie F., 2009. "The tragedy of the commons in international fisheries: An empirical examination," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 321-333, May.
    6. Carlo Carraro & Johan Eyckmans & Michael Finus, 2006. "Optimal transfers and participation decisions in international environmental agreements," The Review of International Organizations, Springer, vol. 1(4), pages 379-396, December.
    7. Pedro Pintassilgo & Michael Finus & Marko Lindroos & Gordon Munro, 2010. "Stability and Success of Regional Fisheries Management Organizations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 377-402, July.
    8. Michèle Breton & Michel Keoula, 2012. "Farsightedness in a Coalitional Great Fish War," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(2), pages 297-315, February.
    9. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
    10. Michael Finus & Raoul Schneider & Pedro Pintassilgo, 2019. "The Role of Social and Technical Excludability for the Success of Impure Public Good and Common Pool Agreements: The Case of International Fisheries," Graz Economics Papers 2019-12, University of Graz, Department of Economics.
    11. Finus, Michael & Schneider, Raoul & Pintassilgo, Pedro, 2020. "The role of social and technical excludability for the success of impure public good and common pool agreements," Resource and Energy Economics, Elsevier, vol. 59(C).

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    More about this item

    Keywords

    Norwegian spring-spawning herring; coalitions; benefit sharing; fisheries; biological uncertainty;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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