Fishing as a Supergame

This paper considers how cooperative solutions to games of sharing fish resources can be supported by threat strategies. With highly mobile fish stocks, the number of agents compatible with a cooperative self-enforcing solution is not very high for reasonable values of the discount rate, but sensitive to changes in the discount rate and costs and to cost heterogeneity. With migrating stocks, where growth and reproduction depend on how much all agents leave behind after harvesting, the likelihood of a cooperative, self-enforcing equilibrium is increased. With a dominant player and a competitive fringe the rents and optimum stock level of the dominant player fall quickly as the share of the competitive fringe increases.