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Revenue targeting in fisheries

Published online by Cambridge University Press:  30 April 2013

Quang Nguyen  and
Pingsun Leung
Quang Nguyen
Affiliation:
Economics Department, Nanyang Technological University, 14 Nanyang Drive, S637332, Singapore. Tel: 6567904895. E-mail: dqnguyen@ntu.edu.sg
Pingsun Leung
Affiliation:
Department of Natural Resources and Environmental Management, University of Hawaii at Manoa, USA. E-mail: psleung@hawaii.edu
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Abstract

We apply the target revenue model, a version of prospect theory, to investigate how fishermen adjust their trip length to changes in daily revenue. The key finding is that certain groups of fishermen seem more likely to behave according to the target revenue model rather than to the standard model of labor supply. We also find that vessel capacity has little effect on whether the captains seek target revenue. The study strongly supports the integration of prospect theory into the framework of labor supply analysis.

Type
Research Article
Information
Environment and Development Economics , Volume 18 , Issue 5 , October 2013 , pp. 559 - 575
Copyright
Copyright © Cambridge University Press 2013 

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