Problem: For decades natural resource economists have recognized the dangers of overharvesting different species of fish, as fisheries have been considered a classic example of the problems of managing a commons. In recent years there has been a dramatic expansion in the size and efficiency of fishing fleets and this has only raised further concerns over harvesting at unstainable levels. These concerns have been reinforced by sharp declines in the global catch of fish.
Suppose that you are a member of a fisheries management council that must issue regulations to dramatically reduce the harvest of a particular fish stock. What steps could be taken to prevent such a tragedy? What type of controls are likely to be most effective? What type of controls are likely to minimize job losses? What controls would be the most efficient? When explaining your answer, consider the role of privatization in a management scheme. Also, how does the issue of scale make it more difficult to manage this resource?