An Experimental Analysis of Optimal Renewable Resource Management
The Fishery
Keywords:
Experimental economics, renewable resources, dynamic decision making, decisions under risk and uncertainty, misperceptions of feedbackAbstract
This paper experimentally studies the extraction decisions of a sole-owner in a fishery, the population dynamics of which behave according to the standard deterministic logistic growth model. Four treatments were implemented which differed in the level of information supplied to the experimental subjects. The theoretical solution was used to evaluate the behaviour of experimental subjects. The data reveal high efficiency losses due to the lack of information on population dynamics and stock size. Efficiency varied between treatments according to the information conditions.
