A Note on Overfishing, Fishing Rights and Futures Markets1

摘要: Introducing a futures market for fishing rights would increase utility for risk averse fishermen. We use the EV model to analyze possible reductions in (expected) profits for fiitures trading that would make fishermen indifferent between the situation with and without futures markets. It is found that a futures market for fishing rights enables policy makers to pursue substantial cuts in the size of annual quotas without hurting fishermen In light of current overfishing and pressure from the sector to avoid dramatic cutbacks in effort, this is an important policy result.