ITQ Effects on Intraseasonal Fishing Behavior: An Investigation of the Bering Sea/Aleutian Island Crab Fisheries

Individual Transferable Quotas (ITQs) have long been touted as a solution to the rent dissipation problem created by the common property nature of fishery resources.  Prospective rent generation under ITQs occurs from the creation of a significantly different incentive system for fishermen:  rather than racing for a larger share of the harvestable stock,  fishermen are motivated  to increase the value of their catch.  While the prospect of rent generation under ITQs is largely agreed upon, little is known about the many margins across which fishermen act to generate these rents.  Previous investigations of ITQ induced fishing behavior have focussed on changes in seasonal production decisions about crew and vessel size, fuel usage, and fishing hours.  In reality, a fisherman's production process consists of many micro-decisions throughout a season.  Understanding this intraseasonal behavior is important for assessing the long term performance and sustainability of ITQ implemented fisheries.  This study uses a unique unbalanced panel dataset containing onboard observations and dockside interviews of vessels before and after the implementation of ITQs in the Bering Sea/Aleutian Island crab fisheries to examine ITQ effects on the intraseasonal decision making and productivity of the catcher vessel sector. Our analysis finds evidence of significant changes in fishermen behavior with ITQ implementation: longer soak times per trap, reduced fishing intensity, longer trips, and changes in the spatial concentration of fishing effort. Furthermore, preliminary analysis of catch per trap as a saturating function of soak time indicates a positive shift in crew productivity with ITQs. Overall, our study provides evidence that the generation of rents emerging from the creation of property rights in fisheries is a complex, multidimensional process and that the intraseasonal decisions of fishermen are important to consider when assessing the effects of ITQ implementation.