Consider catch shares and the negative aspects of this government intervention. Add to your discussion of catch shares using what you have learned about how monopolies make pricing and output decisions, and how and why market power is a problem, in addition to the feedback you received. Include any other negative aspects of catch shares that you find through your own research.
Now put yourself in the role of a social advocate. Noting the problems you presented above, what solutions do you have to help protect society? Offer an alternative solution that addresses the issues you noted in part I and avoids the problems you noted in the first half of part II. Be creative, you are not limited to possible government intervention but should also consider potential interventions from other groups in society.
Note: This is the final part of the writing assignment. You must submit a completed paper with title page, introduction, body, conclusion, and references page. The paper should breakdown the fishing market and problems within it, evaluate the current solution and it’s limitations, and propose an original contribution/potential solution.
(Expand on the attached draft)
Market failure has been a major problem in most of the public goods market where there is no set up share of using the public property by an individual. It requires the use of defning the intellectual propery rights through certain method so that there is minimum loss of interest of all the stakeholders. In given case study, there has been discussion over the share of fishing from sea where there cannot be division of propoerty among people. it increases the chances of market failure in such public markets. The major sources of failures in the market occur because of market power, information which has not been completely shared with the parties, existence of externalities and in case of public goods. In case of market power, there cannot be occurrence of equality between the price and that of marginal cost which increases the producer’s surplus in the market at the cost of consumer’s surplus. The production of output is very small in such situations. In such cases, the betterment of consumers occurs mainly by redirecting the input cost in the reproduction process of the goods in a competitive market leading to reduction in prices until it becomes equal to the marginal cost. So, in case of markets like insurance there is incomplete information where prices actually do not reflect the cost of production or the marginal change in utility derived from the consumption of goods. There will always be the case of wither producing less quantity or producing higher amount of quantity. Negative externality is where the activities of an individual is affecting the welfare or the activities of any other individual or society as a whole. For example, production activities of an industry will pollute the river which will negatively affect the society as whole CITATION Rub10 l 1033 (Pindyck, 2010). Positive externality occurs when the activities of an individual will affect the activities of other person or society as a whole in a positive manner. For example, when there…