Potential Gains from Cooperation for Vessels and Countries

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Abstract
In this paper, we consider a model in which fishing boats or firms share the stock of fish in a fishing ground. The catches made by each firm reduce the stock available for the rest of the firms, which directly affects their profits. We aim to quantify in a static framework the gain in welfare obtained by the firms if they decide to cooperate in order to attain an individually rational efficient outcome. One of the main results is that, both the incentives for the firms to cooperate and the minimum level of catches which permits any gain in welfare decrease as real wage increases. On the other hand, the greater the asymmetry among boats or firms, the more difficult it will be to reach any cooperative agreement.

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