This research examines fisheries management with policy rigidity and stochastic stock growth. A bioeconomic model is developed which requires the manager to set a constant quota level within a short-term planning period. Using numerical simulations, this research examines the effect of policy rigidity on the present value of fisheries revenues, optimal harvest rate, and consequences for stock collapse. The costs of limited information and rigidity are deduced from changes in fishery value under alternative management institutions.
This research finds that policy rigidity can have large negative impacts, although the magnitude of those impacts is highly dependant on the stock-growth parameters. Furthermore, rigidity has large negative impacts on the probability of stock collapse, particularly when growth is not well understood. This research can inform managers that must allocate scarce resources to scientific and management activities across stocks. Additionally, the policy function can assist U.S. managers in specifying Annual Catch Targets (ACTs); under the Magnuson-Stevens Fishery Conservation and Management Act, these are intended to account for management uncertainties. The results suggest that avoiding rigidities, speeding the flow of scientific information, and constructing flexible policies can increase fisheries value. Use of rigid policies should be confined to stocks with well known growth.