An Empirical Investigation of Price-Quantity Relations of the Quota Species of Australia's South East Fishery (Report‪)‬

Introduction Analysis of demand in fisheries is of great importance for a number of reasons. First, estimates of price elasticity under the direct demand system and/or price flexibility under the indirect demand system are useful for determining effective pricing strategy. Second, in calculating gross (or net) revenue, one has to rely on market price. Thus, a sound knowledge of price formation in fisheries is helpful to predict the net benefits to the fisher, which are of great importance in designing policies relevant to rent capture in fisheries (Grafton 1995). Third, market research fulfils the managers' need for up-to-date knowledge about the market and its actors. It also helps to provide marketing managers with the essential information to reduce uncertainty in the decision-making process (Bockstael 1984; Prochaska 1984). Fourth, in a somewhat different but related context, market research is a prerequisite for undertaking successful marketing strategies to satisfy criteria for sustainability of the related industry (Widerberg 1994), and also to attain information on consumer preferences. Last, but not least, demand analysis is important to locate the economic reference point--the maximum economic yield (MEY)--which is one of the objectives of present-day fisheries management (Anderson 1986; Sylvia 1994).