MARKET POWER, INDUSTRIAL-ORGANIZATION AND TRADEABLE QUOTAS

Individual Transferable Quotas (ITQs) were introduced into the Mid-Atl antic Surf Clam and Ocean Quahog fishery to reduce over-capitalization while conserving clam populations. Because the number of operators in the fishery declined drastically since the introduction of this polic y, there is concern about its effect on competitiveness. This paper ut ilizes Bertrand Pricing Models to show that monopoly power is absent f rom the surf clam and ocean quahog markets. Concentration ratios, Lore nz curves and Gini Coefficients estimated for the fishery for periods before and after ITQ introduction support the results of the Bertrand model.