Location Choice of Commercial Fishermen with Heterogeneous Risk Preferences

Mistiaen, Johan A.; Strand, Ivar E.

doi:10.1111/0002-9092.00118

Cited by 98 publications

(70 citation statements)

References 7 publications

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“…Risk aversion of key stakeholders (fishers, industry, and more broadly, society) should therefore be included in the evaluation of management strategies. As Mistiaen and Strand (2000) pointed out, it is widely agreed that fisher's risk preference is a major determinant of their responses to various changes in fishing stock, market, and weather conditions. Therefore, it is important to integrate fisher's risk preference in modelling and to analyse their decision-making behaviour (Nguyen and Leung, 2009).…”

Section: Implication Of Economic Risk When Managing a Mixed Fisherymentioning

confidence: 99%

Risk versus economic performance in a mixed fishery

Gourguet

Thébaud

Dichmont

et al. 2014

Ecological Economics

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:Balancing bio-economic risks and high profit expectations is often a major concern in fisheries management. We examine this trade-off in the context of the Australian Northern Prawn Fishery (NPF). The fishery derives its revenue from different prawn species with different dynamics and recruitment processes. A multi-species bio-economic and stochastic model is used to examine the trade-offs between mean profitability of the fishery and its variance, under a range of economic scenarios, fishing capacities and distributions of fishing effort across the various sub-fisheries that comprise the NPF. Simulation results show that the current fishing strategy diversifying catch across sub-components of the fishery entails a compromise between expected performance and risk. Furthermore, given the current economic conditions, increases in fleet size would improve the expected economic performance of the fishery, but at the cost of increased variability of this performance. Highlights►Balancing economic returns and their variability is a concern in fisheries management. ►Nature of this trade-off is examined for the Australian Northern Prawn Fishery. ►Analyses are based on a multispecies stochastic bio-economic model. ►Fishing effort is allocated between predictable and highly fluctuating components. ►Current effort strategy appears as a compromise between average performance and risk.

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Section: Implication Of Economic Risk When Managing a Mixed Fisherymentioning

confidence: 99%

Risk versus economic performance in a mixed fishery

Gourguet

Thébaud

Dichmont

et al. 2014

Ecological Economics

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“…Short evaluation periods or narrow bracketing is a way of simplifying decisions by isolating them from the entire stream of decisions in which they are embedded (Read and Loewenstein, 1996). The sub-optimal expected utility behaviour of the fishers in the Mistiaen and Strand (2000) study makes sense if we take narrow bracketing into account. The fishers do not evaluate the annual outcome of several trips, but more probably evaluate each trip separately.…”

Section: "I'm Not Answering This Very Academic Question You Simply Gmentioning

confidence: 99%

“…However, despite the importance of understanding fishers' risk preferences, we still have few empirical studies in this area. Previous work finds, almost without exception, that all fishers are risk-averse (Bockstael and Opaluch, 1983, Dupont, 1993, and Mistiaen and Strand, 2000. In a recent paper, Eggert and Tveterås (2001) study risk preferences among a group of Swedish fishers and find that 30% of the trips can be characterized as not being risk averse.…”

Section: Introductionmentioning

confidence: 97%

“…Target species, gear choice, and location choice are decisions often made by fishers at a trip level, where the duration normally is in the range 1 to 30 days. Mistiaen and Strand (2000) studied fishers' location choice on the trip level, where a majority were using fishing grounds that were "easily accessed", and found heterogeneous risk preferences among fishers and that 95% of the trips could be characterized as risk-averse.…”

Section: Introductionmentioning

confidence: 99%

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Are Commercial Fishers Risk-Lovers?

Eggert¹,

Martinsson²

2004

Land Economics

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Empirical studies of fishers' preferences have found that most fishers are risk-averse, while expected-utility theory predicts risk neutrality even for sizable stakes. We test this prediction using data from a stated choice experiment with Swedish commercial fishers. Our results show that almost 90% of the respondents do not behave as expected-utility maximizers. 48% of the fishers can be broadly characterized as risk-neutral, 26% as modestly risk-averse, while 26% are strongly risk-averse. Fishers are more risk-neutral the higher the fraction of their household's income comes from fishing, while fishers with a positive attitude to individual quotas are more risk-averse. Sensitivity testing implies that decisions with modest stakes like a few days of fishing are not influenced by wealth level.

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“…For the commercial fishermen, the choice of fishing effort is perhaps the most important short-run decision that a vessel owner or captain can make. Recent research by Holland and Sutinen (2000), Smith (2005), and Mistiaen and Strand (2000) models the short-run spatial allocation of effort for commercial fishing trips that often take several weeks. For policy makers, area closures or area restrictions are frequently used to control fishing effort and such research could inform their policy choices.…”

Section: Introductionmentioning

confidence: 99%

Small Boat Fishing in Hawaii: A Random Utility Model of Ramp and Ocean Destinations

Haab¹,

Hamilton²,

McConnell³

2008

Marine Resource Economics

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This paper investigates small boat fishing on the island of Oahu, Hawaii. We develop a model in which anglers choose to launch their trailered boats, as well as their ocean destination. The model allows us to study spatial aspects of small boat fishing, including the benefits and costs of attributes of different regions of the ocean, such as fish aggregating devices. Second, it allows us to understand the effects of limiting access to various fishing areas. Short title: Small Boat Fishing in Hawaii

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Location Choice of Commercial Fishermen with Heterogeneous Risk Preferences

Cited by 98 publications

References 7 publications

Risk versus economic performance in a mixed fishery

Risk versus economic performance in a mixed fishery

Are Commercial Fishers Risk-Lovers?

Small Boat Fishing in Hawaii: A Random Utility Model of Ramp and Ocean Destinations

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