| Three topics which relate to marine resource use are discussed, within the context of extended jurisdiction. History reveals the extended jurisdictional trend has likely been brought on by the United States. Given this history, a discussion of how property rights emerge from anarchy is presented. However, the persistence of constrained anarchy is attributed to high transactions costs which are exacerbated by changes in each country's ability to lay hold of resources. Social institutions reduce the cost of transaction, but where these are disallowed, constrained anarchy is chronic. Even in highly developed social systems, some property rights can be quickly eroded by increasing costs of transactions. For this reason, the Law of the Sea Treaty will never by fully ratified. The term "anarchy" could be generally used to mean situations where external effects persist because of the above mentioned phenomenon.; The second topic covers the effects of extended jurisdiction on seafood trade. A theoretical argument is presented to show how factors will move to some other productive activity, if that activity can secure scarce resources. In the absence of explicit trade in factors, other forms of exchange emerge. If alternatives to explicit trade become routine, then analysis of trade data that does not include these alternatives become suspect.; The third topic is an excursion into the area of resource management under assumptions of risk and uncertainty. Its relevance to post-extended jurisdiction fisheries rests in the fact that some fleets, in their development following extended jurisdiction, have used diversification to reduce their risk exposure. Stochastic Efficiency Analysis is one method of assessing which activities are most likely to be in an efficient set. However, the correlation coefficient, as well as mean differences and variance differences, play a large role in determining whether linear combinations of prospects will be more efficient. Examples of the problem are presented for the normal case, using a Monte Carlo simulation. |
