Uncertainty and asymmetric information: An overview

This paper provides an overview of the literature on fisheries economics related to uncertainty and asymmetric information. It is argued that uncertainty is relevant in connection with present and future stock sizes and prices, while asymmetric information is important for cost functions, catches, catch per unit of effort, and effort. The literature on uncertainty and asymmetric information can be seen as providing the basis of an argument for using taxes in fisheries management. It is, therefore, surprising that over 55 countries regulate their fisheries with individual quotas, while taxes are not used at all.