Lab Seminar - Catching fish or catching quota? Market power in New Zealand's fishing rights markets

Cameron is talking about the species-region market

Cameron Birchall presented his research on market power in fishing rights market. This work is a collaboration with Jim Sanchirico. If fishing rights are clearly established and markets are efficient – fishers will trade rights to achieve the least cost harvest. If, however, some fishers have market power because they own many fishing rights. There exists an incentive to capture rents by setting rights prices too high, and in the process misallocate fishing effort. In the research, Cameron and Jim investigate this possibility using a 30-year panel dataset from New Zealand covering 33 species and more than 150 markets for fishing rights. They show preliminary results that despite considerable consolidation, there is no evidence fishers exercise market power.