Maximizing the Present Value of Resource Rent in a Gordon-Schaefer Model

Description

The classical Gordon–Schaefer model presents equilibrium revenue and cost including opportunity costs of labor and capital in a fishery where the fish population growth follows a logistic function Unit price of harvest and unit cost of fishing effort are assumed to be constants In this case the open access solution without restrictions is found when and no rent abnormal profit is obtained Abnormal profit here resource rent is maximized when maximum economic yield Discounted future flow of equilibrium rent is maximized when where is the unit rent of harvest and is the discount rate This situation is referred to as the optimal solution maximizing the present value of all future resource rent The open access solution and equilibriums are found to be special cases of the optimal solution when and respectively

9 Tags

0 Learning Standards

This Resource has not been aligned to any learning standards.

3 Keywords

biological sciences ecology economics
#biologicalsciences #ecology #economics

0 More Like This

0
0
0
0
0
0
0

Comments

Login to comment!

There are no comments on this Resource yet.

Libraries

Login to add this Resource to your Library!
Learn more about IOER Libraries

Ratings

Login to evaluate this Resource!
Learn more about IOER Rubrics and Resource Evaluation

This Resource has not been evaluated yet.

Tools

Login to access IOER Resource Tools!
Learn more about IOER Tools

Report an Issue

Please login to report an issue.