The value of information in a congested fishery
34 Pages Posted: 13 Apr 2022
Date Written: March 22, 2022
We model a fishery with potential congestion; fishers obtain both public and private signals about the location where the fish stock is densest. We extend the literature by including both a larger parameter region and correlation between public and private signals. We analytically determine the regions of parameter space where greater precision of public and/or private information increases welfare. Using high-resolution data from the world's largest fishery, we estimate the structural parameters. Our point estimates imply that congestion is sufficiently important that increased precision of either public or private information lowers expected equilibrium profits.
Keywords: value of information, fishery congestion, Peruvian anchoveta
JEL Classification: D83, Q22, Q28, Q56, O13
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