Assignment task:
Recently, the University of Alberta was visited by Gervais Brooks-Hamster. Gervais is rather famous as a policy analyst as well as for his performances of economic issues via interpretive dance. Indeed, his show this year was entitled "The Inflationary Gap is like a Tree in the Wind." Before going on stage for his performance, he was quoted as saying "The solution to the open access problem is to impose a flat tax on fishing effort or a per unit tax on the harvest. Either of these policies will yield an open access solution that is consistent with the economically efficient solution." Using the Scott Gordon model, discussed in class, explain what these policies will have upon the open access equilibrium. Use a diagram. Do you agree with the Gervais? Which policy would you prefer? Briefly explain why?