The Compleat Fish Wars: Biological and Dynamic Interactions

In this article we study an example of a fishery in which there are two agents, each harvesting two species of fish. There are two externalities in the model: the dynamic externality studied in Levhari and Mirman (1980) and the biological externality examined in Fischer and Mirman (1992). This model allows us to study the interactions between agents in a model in which the species of fish interact. We find the unique closed loop Nash equilibrium in the context of a differential game and we compare the resulting catch ratios to the results of the earlier papers, which allow for only one externality. We also study the efficiency of the solution.