“…The underlying incentive structure for investment decision is thus left relatively unchanged by current entry and exit policies, and has been identified as the major cause for overcapitalisation (Wilen, 1988, Townsend, 1990, Espino et al, 2005, Grafton, 2006, Anderson, 2007, Asche, 2007, Cox, 2007, Wilen, 2007. The incentive instruments advocated in the literature as successfully changing capital investment incentives by better aligning them with harvesting decisions so far have been either Individual Transferable Quotas (ITQ) or taxes (Jensen, 1998, Asche et al, 2008, Squires et al, 2010.…”