Monday, June 10, 2019

Fishing licenses

Maine, often hailed as an example of a successful fishery via licensing, is changing their rules a bit. Turns out things haven't gone so well for new folks hoping to enter the industry. Well, you remember your Resource Econ class? You maximize total profit NOT by allowing free entry and exit, but by limiting catch. Looks like that's what's up in Maine.

Similarly, there's an article in Nature Conservancy's magazine on work they are doing with organizing fishers in Peru. It doesn't sound like there's a lot of progress yet, but the industry is starting to set some boundaries. Remember, the monopoly outcome isn't a terrible result in situations where there are externalities, such as common resources.

Meanwhile, back at home: it turns out it's pretty profitable to mix foreign crab into your domestic product and then pretend that it's good ol' American Blue crab. Virginia's Casey Seafood was found guilty of doing this to the tune of several million dollars. Assuming that this is rare behavior, and that we do want to promote our local industry, here is a listing of businesses that serve only real product.