Opportunity Costs and the Decision to Fish for Northern Anchovy

Abstract

Since 1982, declines in the U.S. reduction fishery for northern anchovy Engraulis mordax were due to ex-vessel prices too low to meet opportunity costs of traditional crew members in the southern California wetfish fleet, rather than to inability to meet variable (short-run) costs for items such as fuel. The decline of the fishery appeared to be driven largely by opportunity costs, which, in turn, depended on the ethnic background of crew members. Our analysis indicated that opportunity costs and sociological factors, which are often ignored by fishery managers who traditionally focus on biological analyses, can affect a fishery and its performance. Estimates of opportunity and variable costs from our study should be useful in the development of management plans for the wetfish fishery.