Limited Entry in the Western Australian Rock Lobster and Prawn Fisheries: An Economic Evaluation

Abstract

Limited entry was first introduced into the rock lobster and prawn fisheries in 1963. Both fisheries have been characterized by rapidly rising prices for species caught. Although some sectors of the rock lobster fishery have remained moderately profitable, excessive reinvestment in boats and equipment has greatly reduced potential profitability. No trend towards company ownership of boats has been evident in this fishery. The prawn fishery was initially developed with a high degree of company ownership and the proportion of company ownership has increased. Overcapitalization has not occurred to any great extent in this fishery and profitability has remained high. Key words: rock lobster, prawns, limited entry, Australia, economics, overcapitalization, monopoly