Chapter 5 - Assignment 2: Markets and Ocean Fisheries

1. In the absence of government regulation, do individuals possess property rights to fish in the ocean?
2. Why are many ocean fisheries experiencing significant declines in the harvest of fish? Is this problem related to the existence of property rights?
3. Why would a quota on the total catch in a fishery or shortened fishing seasons lead to too much investment in capital and an inefficient use of resources?
4. Would the use of individual transferable permits (as discussed in your text on p. 115) result in a more efficient outcome? Explain.