Spatial Choice and Fisheries Bycatch: The Eastern Bering Sea Flatfish Fisheries by JOSHUA K. ABBOTT Ph.D. Candidate Department of Agricultural and Resource Economics University of California, Davis One Shields Avenue Davis, CA 95616 abbott@primal.ucdavis.edu and James E. Wilen Professor Department of Agricultural and Resource Economics University of California, Davis One Shields Avenue Davis, CA 95616 wilen@primal.ucdavis.edu Corresponding author: Joshua K. Abbott Abstract The flatfish trawl fisheries of the Eastern Bering Sea have been plagued by bycatch issues. Under the system of management used by the North Pacific Fisheries Management Council, the bycatch of crab and halibut is strictly controlled by the use of aggregate limits on the amount of these species that can be caught in a given season. Unfortunately, the spatial coincidence of bycatch and flatfish species, the non-selectivity of trawl gear, and the perverse incentives arising from the common quota system have lead to numerous premature season closures due to bycatch species, resulting in significant economic losses. In response to these losses, the majority of fishermen forged an agreement with a third-party contractor, Sea State Inc., to pool spatially and temporally explicit bycatch data in a shared information system so that this data could then be used on a near real-time basis to avoid bycatch “hot spots”. The participants have claimed significant bycatch reductions from this system. However, the subsequent patterns of bycatch rates have left some cause for doubt with some species actually showing increases in their bycatch rates. Furthermore, the simultaneous regulatory establishment of closed areas for the protection of crab species may deserve much of the credit for reduced crab bycatch. To uncover fishermen’s incentives for bycatch avoidance and test the impact of Sea State and spatial closures, we devise and estimate a random utility model of fishing location choice. This model differs from those in the literature in that fishermen base their choice of location not only on expected target catch, but also on the expected harvest of bycatch species, thus allowing us to uncover the “shadow cost” of bycatch in the minds of fishermen. We estimate this model on an unusually rich dataset obtained from the North Pacific Groundfish Observer Program that records the repeated spatial choices of fishermen at the individual haul level over a 6-year period spanning the implementation of Sea State. Results are preliminary, but they suggest that the shadow costs of halibut and crab were quite low prior to Sea State and that the program had only minimal positive impacts upon fishermen’s incentives to avoid bycatch. Instead, reductions in bycatch appear to be largely attributable to improvements in the quality of information available to fishermen through Sea State. Finally, the closure of an area for the avoidance of crab bycatch appears to have caused an unforeseen increase in the bycatch of halibut due to the reduced ability of fishermen to alter their blend of bycatch by their choice of fishing grounds. Keywords: Bycatch, Spatial Behavior, Random Utility Model