1. Strategic harvest control rules: game-theoretic insights Marko Lindroos University of Helsinki Department of Economics and Management

2. Harvest control rules set by a single country Bioeconomic models used to find optimal harvest This means static/dynamic optimisation of fishing mortality, harvest or effort The objective is to reach bioeconomic sustainability of the fishery Design economic incentives such that optimum is achieved

3. Why game theory? Whenever there is more than one interest group (country, fishermen etc.) strategic behaviour / competition may prevent optimal harvest control International fisheries have very limited possibilities to prevent strategic behaviour / free-riding

4. Alternative game models Non-cooperative games –only individual benefits matter Cooperative games –sharing of benefits Coalitional games –how coalitions form

5. Cooperative games Assume Sweden, Norway and Finland can form coalitions when harvesting fish stocks Possible coalitions {SWE}, {FIN}, {NOR}, {SWE, NOR}, {SWE, FIN}, {NOR, FIN}, {SWE, NOR, FIN}

6. Cooperative Solutions How should they share cooperative benefits? The solutions search an allocation of cooperative benefits given e.g. individual & group rationality

7. Coalitional games: Searching for equilibrium cooperation structures NOR SWEFIN {NOR, SWE, FIN}{NOR, FIN}SWE Non-Cooperation Partial Cooperation Full Cooperation

8. How to make cooperation more attractive? 1.Threat (trigger) strategies 2.Side payments 3.Safe Minimum Bioeconomic Levels of fish stocks (Reference points) 4.Give fishermen more responsibility in harvest control