On the Effects of Unilateral Quotas on the Harvesting of a Renewable
by
Hassan Benchekroun
Florida Atlantic University

This paper examines the exploitation of a common property renewable resource by a given number of firms each belonging to a different country. I analyze the effects of unilateral a production quota imposed on a domestic firm. It is shown that reducing the production of the domestic firm alone can result in a decrease of the resource stock in the long-run. This remains true even for quotas for which the production restriction is stronger the lower the resource stock. On the other hand, implementing a quota for which the production restriction is weaker the lower the resource stock, may not only result in an increase of the resource stock, but also improve the domestic firm's profits in the long-run.

Date received: May 11, 2000

Copyright © 2000 by the author(s). The author(s) of this document and the organizers of the conference have granted their consent to include this abstract in Atlas Mathematical Conference Abstracts. Document # cafc-33.