There is a reference to successful collusion in the NZ and Australian fishing industry over at Free Exchange, an Economist blog (alas, I pilfered their clever title). The article asks whether collusion can be used to protect the environment. It looks like yes, at least in the short term. As with all commons problems, there is an incentive to cheat.
Nonetheless, it's an interesting concept that might hold some promise if there is a way to enforce cartel control (and prevent cheating).
Incidentally, Free Exchange is one of my favorite blogs.
1 comment:
Rather than trying to facilitate this delicate cartel, a better policy would be to just auction off exclusive rights to commercial fishing. Competitive markets are extremely efficient but in the face of a market failure like this commons problem a monopoly will achieve a close approximation.
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