Working Paper, University of Utah, Department of Economics 2014-01
The importance of fish size for price per kilo is studied using an inverse demand approach. Prices per kilo in different size categories of the same species differ significantly. This means that the average price for a species may change due to e.g., high-grading, growth overfishing or a changing climate which all have the potential to change the size composition of the catch. The estimates show that quantity flexibilities differ substantially across size and species while scale flexibilities in general are close to homothetic. The results imply that the effect of size on price is an important aspect to take into account when formulating regulation or policies to curb growth overfishing and high-grading.