Second, to address the issue of consumer surplus, a downward

sloping demand is required and the form used is price=p−βY in Section 3.4. For the discussion of producer surplus in Section 3.5, a convex cost function is required, and the form chosen is the quadratic C=αE2, knowing that any form could do as long as the marginal cost increases with effort. Thus any C=αEa, with a>1, may be used. Possible implications of this for the results are discussed in Section 3.5. Under open access, effort is adjusted in proportion to profit according to equation(6) dEdt=μ(AR(E)−MC(E)),where μ is the effort response parameter, AR(E) is the average revenue as a function of effort and MC(E) is the marginal cost of effort. Trametinib concentration Equilibrium under pure open access requires that (1) and (6) both equal zero, while for an MPA and open access equilibrium in HZ it is required that (2), (3) and (6) all equal zero. In the pre-reserve case when both price p and unit cost of effort a are constant, equilibrium stock level and fish density will be S=c=a/pr and equilibrium effort will be E=1−c. In the case of an MPA and open access HZ the stock level in the harvest zone will be S2=c(1−m).

Note that the fish buy Epacadostat density at open-access equilibrium is the same pre-reserve and post-reserve. The steady state stock levels in the case of a downward sloping demand or non-linear costs will be addressed in 3.4 and 3.5 respectively. Parameter values used for figures and illustrations are listed in Table 1. The analysis is restricted to fisheries where the stock is biologically overfished, implying that the pre-MPA stock Fenbendazole level is less than 50% of the carrying capacity. Two cases

are chosen, one in which the stock is severely overfished and at only 15% of the carrying capacity, and one in which the stock is lightly overfished, with equilibrium stock level at 45% of carrying capacity.3 The analysis is restricted to cases where an MPA will be sufficient to protect a stock from extinction even in the case of zero cost harvesting – when γ, the ratio of the migration coefficient and the intrinsic growth rate of the stock is less than 1. If γ>1, an MPA alone will not be sufficient to protect a stock from extinction in the zero cost case ( [15], Theorem 1). As the value of this parameter is significant for the results, two different values are used; γ=0.3 and γ=0.7, recalling that γ=σ/r. Conservation of fish stocks may be an objective in itself, for example to reduce the risk of extinction or to ensure non-use and/or option values of the resource. Non-use values incorporate existence and bequest values, such as the pure valuation of the existence of natural resources or the willingness to pay to leave resources for future generations.