Abstract
The concept of maximum sustainable yield frontier (MSF) is applied to a Gause model of competing species. Maximizing the present value of economic rent under costless harvesting with positive discount rate implies optimal stock levels below the locus of MSF stocks. Maximizing economic rent with positive harvesting costs and zero discount rate implies optimal stock levels above the locus of MSF stocks. It is shown how the optimal steady state stock levels are altered by changes in the exogenous discount rate, harvest prices, and harvest costs. Optimal harvesting might imply harvesting of one of the two species at a loss.
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