Excess capacity and asymmetric information in developing country fisheries: the Malaysian purse seine fishery

• Main Authors: Kirkley, James E., Squires, Dale, Alam, Mohammad Ferdous, Ishak, Omar
• Format: Article
• Language: English
• Published: Agricultural & Applied Economics Association 2003
• Online Access: http://psasir.upm.edu.my/id/eprint/40300/1/Excess%20Capacity%20and%20Asymmetric%20Information%20in%20Developing%20Country%20Fisheries%20The%20Malaysian%20Purse%20Seine%20Fishery.pdf; http://psasir.upm.edu.my/id/eprint/40300/; http://ajae.oxfordjournals.org/content/85/3/647
• Institution: Universiti Putra Malaysia

Excess capacity poses a problem in many developing country fisheries. These countries often pursue a development strategy aimed at expanding capacity under open access. Sustainable development, however, requires management. Principal-agent issues from asymmetric information between the regulator and fishers, which potentially form serious obstacles to fisheries management, arise in the likely forms of management. This article discusses principal-agent issues and examines the principal-agent moral hazard issue, which is due to divorce of ownership and vessel operations. The article also illustrates a method for estimating capacity when information is limited. The Peninsular Malaysian purse seine fishery forms a case study.