Dynamic, Stochastic Modelling of the Exmouth Gulf Prawn Fishery
This chapter provides a dynamic model of the stochastic variety, the main contribution being the application of a numerical computer approach which develops best policies for a fishery in which some key variables are stochastic, and non-linear, non-stationary dynamic aspects appear important. It describes the distinction between the short-run decisions for a given level of capital and the long-run or investment problem of determining the best level of capital to employ when exploiting a fishery. The fishery chosen to illustrate the methodological approach is the Exmouth Gulf prawn fishery on the west coast of Australia. Although the likely decisions of competitive, private firms are kept in mind for comparison, the concern is with the development of socially optimal short-run and investment policies for the fishery. In the Exmouth Gulf fishery there exist three commercially important species of prawns: the western king prawn, the brown tiger prawn and the endeavour prawn.