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Title: Effects of rotation scheme on fishing behaviour with price discrimination and limited durability: Theory and evidence.
Authors: Seki, Erika
Keywords: price discrimination
alternating duopoly
durable goods
Issue Date: Oct-2004
Publisher: University of Aberdeen Business School
Series/Report no.: Economics Working Paper Series
Abstract: This paper examines how rotation arrangement between two groups of fishers with different institutional arrangements affects fishing behaviour and economic outcomes in a particular economic environment characterised by price discrimination and product durability. In one group, fishers cooperate and maximise the extraction of rents, while members in the second group behave non-cooperatively. Applying a model of alternating duopoly, we show that the cooperating group behaves like a price discriminating monopolist and tends to uphold prices. When the two groups rotate fishing days the cooperating group tends to produce more, which prevents the non-cooperating group from unprofitable demand pre-emption.
ISSN: 0143 4543
Appears in Collections:Economics research
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