The value of information in a congested fishery

34 Pages Posted: 13 Apr 2022

See all articles by Gabriel Englander

Gabriel Englander

University of California, Santa Barbara

Larry S. Karp

University of California, Berkeley

Leo K. Simon

University of California

Date Written: March 22, 2022

Abstract

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

Suggested Citation

Englander, Gabriel and Karp, Larry S. and Simon, Leo K., The value of information in a congested fishery (March 22, 2022). Available at SSRN: https://ssrn.com/abstract=4072945 or http://dx.doi.org/10.2139/ssrn.4072945

Gabriel Englander (Contact Author)

University of California, Santa Barbara ( email )

4670 Physical Sciences North
Santa Barbara, CA 93106-5131
United States

Larry S. Karp

University of California, Berkeley ( email )

Dept. of Agriculture & Resource Economics
313 Giannini Hall
Berkeley, CA 94720
United States
510-643-8911 (Fax)

Leo K. Simon

University of California

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