Public Regulation and the Structure of Production in Multiproduct Industries: An Application to the New England Otter Trawl Industry

Abstract

This article considers the problem of managing multispecies fishing industries as one of regulating the production of individual multiproduct firms. The multispecies New England otter trawl industry is examined within this framework. Empirical results derived from estimating a multiproduct profit function indicate that management consistent with the structures of multiproduct production and costs would directly regulate inputs. Little support is provided for applying the traditional bioeconomic model to the fishery studied.