Optimal allocation of TAC and the implications of implementing an ITQ management system for the North-East Arctic cod

First, we study the allocation ride applied to split the Norwegian total al lowable catch for cod between coastal and trawler vessels. Second, we explo re the bioeconomic implications of an ITQ management system for this fisher y. A model combining a cannibalistic bio-mode with cooperative game theory is developed. Key results from the study are (1) the current allocation rul e acts in opposite fashion to what may be considered bioeconomically optima l; and (2) an ITQ system for this fishery is likely to result in economic l osses, as the biological advantages of harvesting with the two vessels type s may be lost.