Science Serving Maryland's Coasts

Research Publications: UM-SG-RS-2013-10

Title: 

Auction design, incentives, and buying back Maryland and Virginia crab licenses

Year: 

2013

Authors: 

DePiper, GS; Higgins, N; Lipton, DW; Stocking, A

Source: 

Canadian Journal of Agricultural Economics 61(2):353-370

DOI: 

10.1111/cjag.12005

Abstract: 

Fisheries managers use buybacks to reduce fleet capacity, conserve fish stocks, and accomplish other goals. In 2009, Maryland and Virginia conducted auctions to buy back commercial fishing licenses. The auctions in both States had similar timing, objectives, and target populations. The divergent designs of the auctions, however, provide a case study with which to investigate effective buyback practices. We compare and contrast the market designs used by Maryland and Virginia, and describe how those differing designs influenced the respective outcomes. Les gestionnaires des peches recourent aux rachats de permis pour reduire la capacite des flottilles de peche, proteger les stocks de poissons et realiser divers objectifs. En 2009, les Etats du Maryland et de la Virginie ont organise des ventes aux encheres pour racheter des permis de peche commerciale. Le moment choisi, les objectifs et les populations cibles de ces deux Etats etaient similaires. Toutefois, les conceptions des encheres etaient differentes et offraient l'occasion d'examiner les pratiques de rachat efficaces. Nous faisons ressortir les similitudes et les differences des conceptions du marche utilisees par le Maryland et la Virginie, et nous decrivons de quelle facon ces conceptions ont influence les resultats respectifs.

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