Max Net Benefits Comm Net Benefits Rec Net

Max Net Benefits = Comm Net Benefits + Rec. Net Benefits TAC = Commercial Qc + Recreational Qr Recreational Net Marginal Benefits Commercial Net Marginal Benefit MNBr MNBc Recreational Allocation Commercial Allocation

Consumer & Producer Surpluses CS Supply PS P* Demand Q* Recreational Sector: CS rec + PSrec Commercial Sector: CScom + PScom Q*

Commercial Sector Multispecies Vessel Level Profit Function (Gear Specific) Demand Curve P = f(Q, Substitutes, Income…/TACC) Recreational Sector For-Hire: Hedonic specification Charter Price = f(hours, county-specific catch rate, wave…) Private Recreational: Addressed under an ongoing MARFIN project (Whitehead, Haab, Hicks, Schnier) Preliminary results –May SEP meeting

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Increase in Recreational Allocation Recreational Net Marginal Benefits Commercial Net Marginal Benefit MBr MBc Recreational Allocation Commercial Allocation

Increase in Commercial Allocation Recreational Net Marginal Benefits Commercial Net Marginal Benefit MBr MBc Recreational Allocation Commercial Allocation

yyyy Source Mc. Leod and Nicholls, 2004

Equimarginal Principle Marginal NB 1 = Marginal NB 2 = …= Marginal NBi For a 2 -sector allocation (Recreational and Commercial) Marginal NBrecreational = Marginal NBcommercial Net Benefits are maximized when the extra net benefits gained from a larger allocation (unit) to one sector are equal to the loss of net benefits due to a smaller allocation for the other sector