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Optimal Harvest Licensing When Harvest Success Is Uncertain
Author(s) -
Hussain Abul Maala Tanvir,
Tschirhart John
Publication year - 2010
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aap019
Subject(s) - license , licensee , stock (firearms) , business , recreation , fishing , microeconomics , economics , computer science , fishery , engineering , mechanical engineering , law , political science , biology , operating system
Optimal harvests using individual licenses are determined given that a licensee's probabilities of procuring a license and harvesting successfully are less than one. Probabilities are dependent on the resource stock and the number of licenses, and licensees benefit from the harvesting experience itself. Recreational fishing and hunting are applications. The optimum stock may be greater or less than the maximum sustained yield stock, and investing in more stock decreases licenses but increases licensees' success. The optima depend on whether the license agency views applicants as dedicated or social, where the latter are relatively more interested in procuring a license than in a successful harvest.