Equilibrium management of fisheries with altruistic overlapping generations

Ivar Ekeland, Larry Karp and Ussif Sumaila

No 123635, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

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 to time inconsistency. The unique Markov Perfect equilibrium to this model has a striking feature: provided that the current generation has some concern for the not-yet born, the equilibrium policy does not depend on the degree of that concern.

Keywords: Production; Economics (search for similar items in EconPapers)
Pages: 24
Date: 2011-12-10
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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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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:123635

DOI: 10.22004/ag.econ.123635

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