31


 The above discussion has provided a review of Smith's (1969) steady

state representation of an unregulated commercial fishery. As with

previous writers, Smith's conclusion is that the unrestricted operation

of a fishery results in levels of catch and effort which exceed those

necessary to maximize returns to the resource. Furthermore, Smith

assumes if the fishery were managed by a sole owner, the appropriate

levels of catch and effort would result. These levels are harmonious

with previous writers in that they result in maximizing returns to the

resource; in other words, static MEY results.

 The profit function for a sole owner can be written as


S = P(m)Vx VQ(x, X, m, V)


(20)


where all terms are defined as above. In contrast to the firm which

considers only m and x as decision variables, the sole owner must maxi-

mize equation (20) with respect to the arguments x, m, X, and V.

Furthermore, to insure that the stock remains in equilibrium, maximiza-

tion of equation (20) is constrained such that f(x, m, Vx) = 0.

Constrained maximization of the above profit function leads to the first-

order conditions


P(m) = c1 x f3

 xf
xp' (m) + 2 < c3
 V_ 3 c


if < m = m


 Vc2
 f

S= P(m) x- c = Vc f3x
 V3


F(X, m, Vx) = 0


(20a)


(20b)


(20c)


(20d)


(20e)