Iceland The Impact of the Cost of the Time Resource on the Efficiency of Economic Processes

• Main Authors: Ingolfur Arnarson, Pall Jensson, Ingólfur Arnarson A, Páll Jensson B
• Other Authors: The Pennsylvania State University CiteSeerX Archives
• Format: Text
• Language: English
• Published: 2003
• Subjects: Economics; Natural resources; Value of time; Fishery management; Simulations. 1; Iceland
• Online Access: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.200.2189; http://www.ioes.hi.is/publications/wp/w0304.pdf

The objective of the paper is to simulate behavior of economic agents with a special emphasis on the use of the time resource in economic processes. The case studied, is brought from the fishing industry. With an aid of simulations, the study analyzes behavior of economic agents as they lead their processes through time. The paper estimates the value of time in a fishery operation, and shows that the time cost is essential in clarifying some phenomena in economic behavior of agents. Among the conclusions is that difference in economic efficiency between strong and weak ownership is due to difference in time costs. The secondary goal of the paper is to develop a simulation tool that can be of use in analyzing a range of problems in the fishing industry, ranging from decision situations onboard fishing vessels to serve as a tool for fishery managers and legislators.