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Optimal harvesting with both population and price dynamics
1Department of Mathematics, Statistics, and Computer Science (M/C 249), University of Illinois, Chicago 60607-7045, USA. hanson@uic.edu
Mathematical Biosciences
|June 4, 1998
Summary
Large price fluctuations significantly impact optimal harvest returns in fisheries, even in risky environments. However, optimal harvesting effort remains largely unaffected by inflation.
Area of Science:
- Fisheries Science
- Bioeconomics
- Stochastic Modeling
Background:
- Schaefer model for fisheries management
- Randomized population dynamics with Wiener and Poisson processes
- Density-independent population fluctuations
Purpose of the Study:
- Analyze the impact of inflationary price fluctuations on optimal harvest strategies
- Determine optimal harvesting effort and economic return under price volatility
- Utilize bioeconomic data for Pacific halibut
Main Methods:
- Stochastic dynamic programming
- Incorporation of both price and population randomness
- Analysis of hazardous and disastrous environmental scenarios
Main Results:
- Inflationary effects significantly influence optimal economic returns
- Optimal harvest returns are sensitive to price fluctuations
- Optimal harvesting effort levels show less sensitivity to inflation
Conclusions:
- Inflation is a critical factor in fisheries economic return optimization
- Harvesting effort strategies are more robust to price volatility than returns
- Management strategies must account for price uncertainty in fisheries