THE COMPLEAT FISH WARS - BIOLOGICAL AND DYNAMIC INTERACTIONS

Zn this article we study an example of a fishery in which there are tw o agents, each harvesting two species of fish. There are two externali ties in the model: the dynamic externality studied in Levhari and Mirm an (1980) and the biological externality examined in Fischer and Mirma n (1992). This model allows us to study the interactions between agent s 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 an d we compare the resulting catch ratios to the results of the earlier papers, which allow for only one externality. We also study the effici ency of the solution. (C) 1996 Academic Press, Inc.