Gordon-Schaefer Model
The Gordon-Schaefer Model is the center of Bioeconomics. It is one of the driving models behind attempts to compute the maximum sustainable yield in fisheries. It can be applied to 3 primary scenarios: Monopoly; Maximum Sustainable Yield (Biological Optimum) and Open Access.
Monopoly
Profit maximizing firms whether in monopoly or competitive markets, increase production to the point that marginal revenue = marginal costs. Monopoly firms produce less at higher prices than competitive markets.
Maximum sustainable yield (MSY)
The MSY is the largest amount of biomass that can be collected annually for indefinite periods. MSY assesses the productive capacity of the fishery, rather than demand or economic costs. MSY output may be greater or less than monopolistic or competitive output.
Open access
Open access is an unrestricted market. In open access, production in a given year is limited by demand and the costs of production without regard to that year's effects on future years. Open access markets can be competitive or monopolistic.
References
- Munro, Gordon R. (August 1979). "The Optimal Management of Transboundary Renewable Resources". The Canadian Journal of Economics / Revue canadienne d'Economique. Blackwell Publishing on behalf of the Canadian Economics Association. 12 (3): 355–376. JSTOR 134727.
- Shah, M. A.; Sharma, U. (2003). "Optimal harvesting policies for a generalized Gordon–Schaefer model in randomly varying environment.". Applied Stochastic Models in Business and Industry. 19: 43–49. doi:10.1002/asmb.490.