Vertical integration in the post-IFQ halibut fishery

In some fisheries, claims have been made that quota programs have led to increased vertical integration, with processors controlling quota and fishermen. In the US halibut fishery a quota program was designed specifically to maintain the small-scale vessel nature of the fishery. This paper reports on what changes have been seen in the vertical structure of the halibut fishery and offers some explanation for these changes. Results indicate that the specific rights granted can have significantly different effects on the vertical structure of the industry. In the case of the halibut fishery vertical integration was avoided and market transactions actually increased.