The tragedie of the Tuna

Abstract This paper examines the threat of extinction that faces the Atlantic Bluefin Tuna due to overfishing. The problem is first defined as a ‘tragedy of the commons’, and the game theory behind the behaviour of the fishermen is discussed. Subsequently, three solutions are analysed to deal with the issue. A trade embargo and a Pigouvian tax approach were found to be inefficient and difficult to apply. The third solution however, involving a cap and trade approach, was found to be both efficient and effective. In this system, each country gets a fixed quota which they can distribute amongst local fishermen. These individuals can then trade their fishing permits in an international market. The paper later goes on to identify the steps needed to transition from the present state to the proposed system.