Interpretation of fishermen's decision-making based on prospect theory

Fishermen's behaviors in bioeconomic models are usually described as those based on rational choices. Most models assume that fishermen precisely assess stock status and can find a unique solution to maximize yields. However, it is known that individuals have different risk attitudes under uncertainty. Empirical studies based on experiments have shown that decision-making under uncertainty often diverges from what would be described by the expected utility hypothesis. Therefore, it is suggested that fisheries management policies in which behavioral dynamics are excessively simplified require careful application. Numerous studies by behavioral economists have frequently found that rationality-violating choices can be adequately predicted by prospect theory. The usefulness of this novel theoretical basis is not yet widely known in fisheries management studies. This study overviews the potential of prospect theory as a practical tool and addresses various inclinations of preferences in fishermen's choices.