(i) The results of this chapter have shown that the outcomes (for S, E and H) are identical in what has been called the PV-maximising model and the static private-fishery profitmaximising model when the discount rate is zero. Explain why this is so. Also explain why the stock level is higher under zero discounting than under positive discounting.

(ii) It has also been shown in this chapter that as the interest rate becomes arbitrarily large, the PV-maximising outcome converges to that found under open access. Why should this be the case? (If you are using the exploit5.xls spreadsheet, this result can be quickly verified. In the worksheet ‘Steady states (2)’, note that at i = 1000, the present-value outcome is more or less identical to that which emerges under open access.)