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Equilibrium management of fisheries with altruistic overlapping generations

Authors
  • Ekeland, Ivar
  • Karp, Larry
  • Sumaila, Rashid
Publication Date
Dec 10, 2011
Source
eScholarship - University of California
Keywords
License
Unknown
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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.

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