"We show that grandfathering fishing rights to local users or recognizing first possessions is more dynamically efficient than auctions of such rights. It is often argued that auctions allocate rights to the highest-valued users and thereby maximize resource rents. We counter that rents are not...

This paper analyses the reform undertaken by Iceland to avert a looming crisis and restore fish stocks to sustainable levels. The paper outlines the process involved in designing and implementing this reform. It also reflects on the challenges encountered and the environmental, economic and...