Essays in mechanism design

This dissertation contains three essays on mechanism design. The common goal of these essays is to assist in the solution of different resource allocation problems where asymmetric information creates obstacles to the efficient allocation of resources. In each essay, we present a mechanism that satisfactorily solves the resource allocation problem and study some of its properties. In our first essay, ”Combinatorial Assignment under Dichotomous Preferences”, we present a class of problems akin to time scheduling without a pre-existing time grid, and propose a mechanism that is efficient, strategy-proof and envy-free. Our second essay, ”Monitoring Costs and the Management of Common-Pool Resources”, studies what can happen to an existing mechanism — the individual tradable quotas (ITQ) mechanism, also known as the cap-and-trade mechanism — when quota enforcement is imperfect and costly. Our third essay, ”Vessel Buyback”, coauthored with John O. Ledyard, presents an auction design that can be used to buy back excess capital in overcapitalized industries.

Design of a Recreational Fishing Survey and Mark-Recapture Study for the Blue Crab, Callinectes sapidus, in Chesapeake Bay

The development of bay wide estimates of recreational harvest has been identified as a high priority by the Chesapeake Bay Scientific Advisory Committee (CBSAC) and by the Chesapeake Bay Program as reflected in the Chesapeake Bay Blue Crab Fishery Management Plan (Chesapeake Bay Program 1996). In addition, the BiState Blue Crab Commission (BBCAC), formed in 1996 by mandate from the legislatures of Maryland and Virginia to advise on crab management, has also recognized the importance of estimating the levels and trends in catches in the recreational fishery. Recently, the BBCAC has adopted limit and target biological reference points. These analyses have been predicated on assumptions regarding the relative magnitude of the recreational and commercial catch. The reference points depend on determination of the total number of crabs removed from the population. In essence, the number removed by the various fishery sectors, represents a minimum estimate of the population size. If a major fishery sector is not represented, the total population will be accordingly underestimated. If the relative contribution of the unrepresented sector is constant over time and harvests the same components of the population as the other sectors, it may be argued that the population estimate derived from the other sectors is biased but still adequately represents trends in population size over time. If either of the two constraints mentioned above is not met, the validity of relative trends over time is suspect. With the recent increases in the human population in the Chesapeake Bay watershed, there is reason to be concerned that the recreational catch may not have been a constant proportion of the total harvest over time. It is important to assess the catch characteristics and the magnitude of the recreational fishery to evaluate this potential bias. (PDF contains 70 pages)

A new adaptive marine policy toolbox to support ecosystem-based approach to management

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A modelling approach to the development of an active management strategy for the Queen Elizabeth II reservoir

This article outlines the outcome of work that set out to provide one of the specified integral contributions to the overarching objectives of the EU- sponsored LIFE98 project described in this volume. Among others, these included a requirement to marry automatic monitoring and dynamic modelling approaches in the interests of securing better management of water quality in lakes and reservoirs. The particular task given to us was to devise the elements of an active management strategy for the Queen Elizabeth II Reservoir. This is one of the larger reservoirs supplying the population of the London area: after purification and disinfection, its water goes directly to the distribution network and to the consumers. The quality of the water in the reservoir is of primary concern, for the greater is the content of biogenic materials, including phytoplankton, then the more prolonged is the purification and the more expensive is the treatment. Whatever good that phytoplankton may do by way of oxygenation and oxidative purification, it is eventually relegated to an impurity that has to be removed from the final product. Indeed, it has been estimated that the cost of removing algae and microorganisms from water represents about one quarter of its price at the tap. In chemically fertile waters, such as those typifying the resources of the Thames Valley, there is thus a powerful and ongoing incentive to be able to minimise plankton growth in storage reservoirs. Indeed, the Thames Water company and its predecessor undertakings, have a long and impressive history of confronting and quantifying the fundamentals of phytoplankton growth in their reservoirs and of developing strategies for operation and design to combat them. The work to be described here follows in this tradition. However, the use of the model PROTECH-D to investigate present phytoplankton growth patterns in the Queen Elizabeth II Reservoir questioned the interpretation of some of the recent observations. On the other hand, it has reinforced the theories underpinning the original design of this and those Thames-Valley storage reservoirs constructed subsequently. The authors recount these experiences as an example of how simulation models can hone the theoretical base and its application to the practical problems of supplying water of good quality at economic cost, before the engineering is initiated.

The design of multimesh, multidepth gillnet fleets for use in the Lake Victoria Fisheries Research Project

Multimesh, multidepth gillnet fleets are useful in assessing fish stock abundance, size distribution and depth distribution. Using data collected on net mesh selectivity for Nile perch, Lates niloticus (L.), in the Kenyan waters of Lake Victoria, suitable mesh sizes for gillnet fleets for use in the Lake Victoria Fisheries Research Project were determined. The modal selection length for Nile perch in the mesh sized used in the earlier experiment were determined, as was the size range vulnerable to capture. Initial trials suggest 60% of the Nile perch swim within 5 m of the bottom. Setting and hauling of the nets is simple and quick, allowing the nets to be used at the same time as other sampling programmes.

Experimental design in fluvial ichthyology: getting the most for your money

In field biology, cost efficiency is an essential element of experimental design, with ramifications extending well beyond the basic monetary considerations associated with labour and equipment acquisition. Current economic constraints often require scientists to undertake many technical, secretarial and managerial tasks in addition to those associated with data collection, analysis, interpretation and publication. Because the time spent to process material in the laboratory can rarely be shortened without compromising the integrity of the results, it is imperative that field experiments be well-organised, addressing as many aspects of the problem as possible during the same sampling excursion. The sampling strategy employed should provide a maximum of good field data with a minimum cost of time and effort.

Initiatives for the improvement of continuous management training

[EN] Purpose. This work aims to present, from the company viewpoint, a structured account of management proposals and practices directed toward improving the intensity and effectiveness of continuous management training (CMT). Design/methodology/approach. The article takes as its main theoretical referents the Theory of Human Capital, the Resource-Based Vision and the contributions made via the new institutional economy with regard to the problems of information asymmetry between companies, employees and training providers and completes the proposals that derive from this theoretical approach. To do this, experience-based contributions are collected from a selection of company training and HR managers from twelve Basque companies characterised by their strong investment in management training. The methodology used was qualitative and obtained by different qualitative techniques: Focus Groups, Nominal Groups and the Delphi Method, which make up the so-called Hybrid Delphi. Findings and implications. The proposals are aimed at the main agents in training activity: training providers, associations and public agents engaged in management training and, particularly, companies themselves. The initiatives seek above all to increase training market transparency, to improve mutual commitments between companies and managers, and to link training and development with culture and strategic management, so that firms make optimal investment in management training. Originality/value. The methodology used is original, and the contributions are consistent with the theory, have a proven practical utility, and are presented in a hierarchy, which facilitates decision making.

Impact evaluation of community-based coastal resource management projects in the Philippines

The benefits of decentralizing the management of coastal resources to local governments and resource users have long been recognized, but the best systems for coastal resources management depend on many factors. A number of community-based management and co-management projects were started in the Philippines in the early 1980s. This report describes a comparative assessment of these projects to determine where improvements can be made in the design of future community-based coastal resource management projects. Early and continuing involvement by project beneficiaries is one of the factors that contributes to the success of the project development, implementation, and evaluation.

A standard format for design and evaluation of pond experiments

Details are given of a standard format used by the Pond Dynamics/Aquaculture Collaborative Research Support Program of the US Agency for International Development for the communication of experimental ideas. An example is given of the "Preliminary Proposal Format," which contains a list of information categories or headings as follows: Title; Objectives: Significance; Experimental design; Pond facilities; Stocking rate; Other inputs; Sampling plan; Hypotheses; Statistical methods; Duration; Water management; and Schedule.