A Model of Quota Prices in a Multispecies Fishery with “Choke” Species and Discarding

Abstract Using a two-stage optimisation model, we simulate the determination of market-clearing quota lease prices in multispecies fishery. Assuming fixed proportions technologies, find that equilibrium are jointly determined. Price equilibria sensitive to both number species and heterogeneity fleet, with corner observed where there relatively large species. Where fleet is very heterogeneous, fail capture all rent as resource inframarginal rents earned by some vessels. If excess demand for (for example, result exhaustion “choke” species) bidding up price causes other fall. This can vessels starting earn even though they discarding part catch. We also use model examine impact “deemed value” charge over-quota landings.