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International Fisheries Management and Recreational Benefits: The Case of Baltic Salmon
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This article studies how accounting for the benefits of recreational fisheries affects the formation and stability of an international fisheries agreement (IFA) on the management of Baltic salmon stocks. The interaction between four countries is modelled through a partition function game, under two scenarios. In the first scenario, countries take their participation decision for the IFA based only on the net present value of profits from commercial fisheries. In the second scenario, the net present value of the recreational benefits from angling is also considered. The results show that accounting for recreational benefits leads to the formation of the grand coalition, whereas only partial cooperation occurs when payoffs are confined to profits from commercial fisheries.