Hammarlund, Cecilia
- Department of Economics, Swedish University of Agricultural Sciences
Abstract
This paper uses logbook data from Swedish Baltic Sea cod trawlers to investigate the revenue target hypothesis. Incomes from fishing can be highly variable and difficult to predict and it is possible that fishermen set specific revenue targets for their fishing trips to simplify decision making. In this paper a discrete choice stopping model is used where the fishermen must decide to stop or continue fishing after each haul. At average trip length, the results indicate that when revenues are higher than expected, fishermen are more likely to return to port. This is in line with the revenue target hypothesis. When using estimated revenue targets the results suggest that the effect of getting higher revenues than expected is stronger when the targets have been reached.
Keywords
Reference dependence; Revenue targets; Discrete choice stopping model; Fisheries
Published in
Journal of Behavioral and Experimental Economics
2018, volume: 75, pages: 1-11
Publisher: ELSEVIER SCIENCE INC
SLU Authors
UKÄ Subject classification
Economics
Publication identifier
- DOI: https://doi.org/10.1016/j.socec.2018.04.013
Permanent link to this page (URI)
https://res.slu.se/id/publ/96175