NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Terry L. Anderson

PERC
2048 Analysis Drive, Suite A
Bozeman, Montana 59718

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org

NBER Working Papers and Publications

November 2010Efficiency Advantages of Grandfathering in Rights-Based Fisheries Management
with Ragnar Arnason, Gary D. Libecap: w16519
We show that grandfathering fishing rights to local users or recognizing first possessions is more dynamically efficient than auctions of such rights. It is often argued that auctions allocate rights to the highest-valued users and thereby maximize resource rents. We counter that rents are not fixed in situ, but rather depend additionally upon the innovation, investment, and collective actions of fishers, who discover and enhance stocks and convert them into valuable goods and services. Our analysis shows how grandfathering increases rents by raising expected rates of return for investment, lowering the cost of capital, and providing incentives for collective action.

Published: “Efficiency Advantages of Grandfathering in Rights-Based Fisheries Management,” Terry Anderson, Ragnar Arnason, and Gary D. Libecap, Annual Review of Resource Economics, 2011.

 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us