Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context
The partition function approach is applied to study coalition formation in the Northeast Atlantic mackerel fishery in the presence of externalities. Atlantic mackerel is mainly exploited by the European Union (EU), the United Kingdom (UK), Norway, the Faroe Islands and Iceland. Two games are conside...
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ftrepec:oai:RePEc:wsi:igtrxx:v:20:y:2018:i:02:n:s0219198918500019 2023-05-15T16:10:55+02:00 Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context Evangelos Toumasatos Stein Ivar Steinshamn http://www.worldscientific.com/doi/abs/10.1142/S0219198918500019 unknown http://www.worldscientific.com/doi/abs/10.1142/S0219198918500019 article ftrepec 2020-12-04T13:30:41Z The partition function approach is applied to study coalition formation in the Northeast Atlantic mackerel fishery in the presence of externalities. Atlantic mackerel is mainly exploited by the European Union (EU), the United Kingdom (UK), Norway, the Faroe Islands and Iceland. Two games are considered. First, a four-player game where the UK is still a member of the EU. Second, a five-player game where the UK is no longer a member of the union. Each game is modeled in two stages. In the first stage, players form coalitions following a predefined set of rules. In the second stage, given the coalition structure that has been formed, each coalition chooses the economic strategy that maximizes its own net present value of the fishery, given the behavior of the other coalitions. The game is solved using backward induction to obtain the set of Nash equilibria coalition structures in pure strategies, if any. We find that the current management regime is among the stable coalition structures in all eight scenarios of the four-player game but in only one case of the five-player game. In addition, stability in the five-player game is sensitive to the growth function applied and the magnitude of the stock elasticity parameter. Mackerel dispute, straddling fish stock, Brexit, game theory, externalities, coalition formation, coalition structure stability Article in Journal/Newspaper Faroe Islands Iceland Northeast Atlantic RePEc (Research Papers in Economics) Faroe Islands Nash ENVELOPE(-62.350,-62.350,-74.233,-74.233) Norway |
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RePEc (Research Papers in Economics) |
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ftrepec |
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description |
The partition function approach is applied to study coalition formation in the Northeast Atlantic mackerel fishery in the presence of externalities. Atlantic mackerel is mainly exploited by the European Union (EU), the United Kingdom (UK), Norway, the Faroe Islands and Iceland. Two games are considered. First, a four-player game where the UK is still a member of the EU. Second, a five-player game where the UK is no longer a member of the union. Each game is modeled in two stages. In the first stage, players form coalitions following a predefined set of rules. In the second stage, given the coalition structure that has been formed, each coalition chooses the economic strategy that maximizes its own net present value of the fishery, given the behavior of the other coalitions. The game is solved using backward induction to obtain the set of Nash equilibria coalition structures in pure strategies, if any. We find that the current management regime is among the stable coalition structures in all eight scenarios of the four-player game but in only one case of the five-player game. In addition, stability in the five-player game is sensitive to the growth function applied and the magnitude of the stock elasticity parameter. Mackerel dispute, straddling fish stock, Brexit, game theory, externalities, coalition formation, coalition structure stability |
format |
Article in Journal/Newspaper |
author |
Evangelos Toumasatos Stein Ivar Steinshamn |
spellingShingle |
Evangelos Toumasatos Stein Ivar Steinshamn Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context |
author_facet |
Evangelos Toumasatos Stein Ivar Steinshamn |
author_sort |
Evangelos Toumasatos |
title |
Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context |
title_short |
Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context |
title_full |
Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context |
title_fullStr |
Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context |
title_full_unstemmed |
Coalition Formation with Externalities: The Case of the Northeast Atlantic Mackerel Fishery in a Pre- and Post-Brexit Context |
title_sort |
coalition formation with externalities: the case of the northeast atlantic mackerel fishery in a pre- and post-brexit context |
url |
http://www.worldscientific.com/doi/abs/10.1142/S0219198918500019 |
long_lat |
ENVELOPE(-62.350,-62.350,-74.233,-74.233) |
geographic |
Faroe Islands Nash Norway |
geographic_facet |
Faroe Islands Nash Norway |
genre |
Faroe Islands Iceland Northeast Atlantic |
genre_facet |
Faroe Islands Iceland Northeast Atlantic |
op_relation |
http://www.worldscientific.com/doi/abs/10.1142/S0219198918500019 |
_version_ |
1765996043149770752 |