Dynamic models of decision making by fishermen

This thesis examines the dynamic decision making behavior of fishermen. Two models are developed: (l) an intraseasonal model of vessel movement on the fishing ground during each season; and (2) an interseasonal model for investment decision making from year to year. Both decision models are driven by single economic objectives and the fisherman-decision maker is assumed to make rational choices to optimize the stated objective. In this competitive market intraseasonal decisions are assumed to be made in the short-run to maximize the net operating income of each fishing enterprise. These decisions about where to fish to obtain the maximum return to fishing effort over the course of the season are modelled by a partially observable Markov decision process which incorporates the key elements of the problem facing each fisherman. The state space for this process is derived from total seasonal biomass. This aggregate description of the state space renders the problem practicable and solvable. The normative model is developed formally and applied to freezer trollers of the British Columbia commercial fishing fleet. Model results for average income and catch per troller, and seasonal fishing distribution over the fishing grounds reflect major tendencies in statistics arising from actual intraseasonal decisions made by this group of fishermen. Interseasonal decisions concerning longer-term investment strategies are made in an environment which is highly variable from season-to-season. Extensive variability implies that economic survival is a primary consideration in the investment decision process. The investment decision making process is modelled as a probabilistic dynamic programming problem in discrete time. Investors are assumed to make rational decisions based on income expectations and subject to survivability conditions to maximize the net worth of the fishing enterprise at the end of a finite planning horizon. The formal analysis of the investment model is presented. The model is applied to all trollers of the British Columbia commercial fishing fleet. The pattern of actual investment by troller is simulated by tuning behavioral components of the investment model. These results provide insight into the behavioral basis of investment decision making by this group of fishermen. This modelling framework has implications for planning and regulation in fisheries. Insight gained into the key factors behind fishermen's decisions can provide a basis for the development of strategic policies which anticipate fishermen's behavior and are aimed at stabilizing the economic viability of the fishing sector. The approach represents a movement away from reactive, short-term policies which have characterized fisheries regulation to date.Business, Sauder School ofGraduat