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Rational taxation in an open access fishery model

2016/02/23 by Dmitry B. Rokhlin, Rokhlin, Dmitry B., Anatoly Usov +1
Mathematics · #49J15 #91B64 #91B76 #FOS: Mathematics #Optimization and Control (math.OC) #math.OC #msc:49J15 #msc:91B64 #msc:91B76

paper · pdf · doi:10.48550/arxiv.1602.07123

18 pages

arxiv created 2016/02/23 · arxiv updated 2016/02/24

Abstract

We consider a model of fishery management, where n agents exploit a single population with strictly concave continuously differentiable growth function of Verhulst type. If the agent actions are coordinated and directed towards the maximization of the discounted cooperative revenue, then the biomass stabilizes at the level, defined by the well known "golden rule". We show that for independent myopic harvesting agents such optimal (or ε-optimal) cooperative behavior can be stimulated by the proportional tax, depending on the resource stock, and equal to the marginal value function of the cooperative problem. To implement this taxation scheme we prove that the mentioned value function is strictly concave and continuously differentiable, although the instantaneous individual revenues may be neither concave nor differentiable.

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