Equilibrium management of fisheries with altruistic overlapping generations

Ivar Ekeland, Larry Karp and Ussif Sumaila

Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series from Department of Agricultural & Resource Economics, UC Berkeley

Abstract: We imbed a classic fishery model, where the optimal policy follows a Most Rapid Approach Path to a steady state, into an overlapping generations setting. The current generation discounts future generations’ utility flows at a rate possibly different from the pure rate of time preference used to discount their own utility flows. The resulting model has non-constant discount rates, leading totime inconsistency. The unique Markov Perfect equilibrium to this model hasa striking feature: provided that the current generation has some concern forthe not-yet born, the equilibrium policy does not depend on the degree of thatconcern.

Keywords: Life Sciences; fisheries management; sustainable development; renewable resources; time inconsistency; hyperbolic discounting (search for similar items in EconPapers)
Date: 2011-12-10
New Economics Papers: this item is included in nep-dge and nep-env
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Citations: View citations in EconPapers (3)

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Working Paper: Equilibrium management of fisheries with altruistic overlapping generations (2011)
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