Rights‐Based Management and Alaska Pollock Processors' Supply

Abstract

Using data from the Alaska pollock fishery, this study investigates the link between the implementation of rights‐based management and processors' price‐responsiveness in a multiproduct fishery. The analysis is based on cointegration with structural breaks to provide empirical evidence of a change in the long‐run relationship between processors' production, product prices, and whole fish deliveries. The results indicate that the endogenously determined structural breaks happened near the time when this fishery implemented individual fishing quotas. Furthermore, the estimation of the cointegrating vector indicates that the processors of this fishery are significantly more price‐responsive after the change in management.

Keywords: cointegration, rights-based management, structural breaks