Path dependence in Faroese fisheries (mis)management

Abstract

This paper diagnoses the lack of adjustments in Faroese demersal fisheries management from 1987 to 2018 despite the disappointing performance of these fisheries since the introduction of harvesting privileges in the fisheries through a limited entry vessel licensing regime in 1987. I argue that both the dismal biological and economic performance of the fisheries and the lack of adjustment in the management regime stems from the fact that rather than seeking to maximize the resource rent from the fish stocks, Faroese fisheries management has always primarily sought to sustain an uneasy equilibrium between intra-industry stakeholders engaged in a continuous bargaining process over the wealth assignments inherent in the allocation of fishing rights. Even though the environment in which this bargaining process operates has changed, the essential features of the bargaining equilibrium as implemented in Faroese fisheries management have remained virtually unchanged.