Growth Overfishing: The Race to Fish Extends to the Dimension of Size

The gravity of growth overfishing is increasingly recognized. The size-distribution of fish stocks is often severely truncated, even when the overall biomass is reasonably well managed. In a first part of this article, I show how the "race to fish" extends to the dimension of size: Akin to the classical Bertrand competition in prices, each agent has an incentive to target fish at a smaller size. In fact, for perfect selectivity, competition between two agents is sufficient to dissipate all rents. In a second part of this article, I explore the implications of size-differentiated harvesting for ITQ regulation. I show that quotas specified in terms of numbers are far superior to those specified in terms of weight or value.