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?