A laboratory assessment of the choice of vessel size under individual transferable quota regimes

Tanaka, Kenta, Higashida, Keisaku, & Managi, Shunsuke (2014) A laboratory assessment of the choice of vessel size under individual transferable quota regimes. Australian Journal of Agricultural and Resource Economics, 58(3), pp. 353-373.

View at publisher

Abstract

This paper examines the effect of individual transferable quota regimes on technology choice, such as choice of vessel size, by using the laboratory experiment method. We find that even if vessel sizes change over time, the quota price can converge to the fundamental value conditioned on the vessels chosen. We also find that subjects choose their vessel type to maximise their profits based on the quota trading prices in the previous period. This result implies that the efficiency of quota markets in the beginning period is important because any inefficiency in quota markets may affect vessel sizes in ensuing periods. Moreover, we find that the initial allocations may significantly influence vessel sizes through two channels: first, a higher initial allocation to a subject increases the likelihood that the subject invests in a large-sized vessel; second, the quota price may be higher and more unstable under unequal allocation than under equal allocation; thus, whether the allocation is equal influences subjects' choice of vessel type. © 2014 Australian Agricultural and Resource Economics Society Inc.

Impact and interest:

0 citations in Scopus
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 84222
Item Type: Journal Article
Refereed: Yes
Keywords: Double auction, Experiment, Fishery, Individual transferable quotas, Technology choice, fishery economics, fishing industry, fishing vessel, quota system, resource allocation, technology
DOI: 10.1111/1467-8489.12064
ISSN: 1467-8489
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Divisions: Current > Schools > School of Economics & Finance
Deposited On: 17 May 2015 23:53
Last Modified: 19 May 2015 01:42

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page