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Linking environmental economics, game theory and fisheries: an estimation of the economic benefits to sharing the Illex argentinus fishery in the Patagonian large marine ecosystem

Sebastián Villasante and Rashid Sumaila. 2010.

Abstract:

The Patagonian marine ecosystem supports one of the most productive straddling fisheries of the world, with important commercial shared fish stocks such as the Argentine shortfin squid (Illex argentinus). This resource is exploited by different foreign fleets that operate both within the Argentine exclusive economic zone and within the adjacent area beyond the 200-limit, as well as in Falklands (Malvinas) waters. Hence, the countries face what is known as stock externality in which one nation catch impacts negatively on another‘s. However, little research has been done on the economic aspects of this fishery. In so doing, is this paper we use the predictive power of the game theory to explore the economic benefits of cooperative or non-cooperative fisheries management of Illex argentinus between Argentina and the United Kingdom. The model used here is a discrete-time of finite horizon with the fishery steady state static model of fishing. The preliminary empirical results suggest that there is a correspondence between what the fishery has experimented over the last few years with a situation of non-cooperative scenario. However, the paper demonstrate that in the cooperative scenario, both players would obtain better economic benefits, because both would reduce the fishing effort and the abundance of the stock would remains below the reference points recommended by scientists.

Keywords: Illex argentinus fishery, Patagonian large marine ecosystem, Game theory, Economic benefits

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