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November 17, 2011

Introduction to Fishbanks
John Sterman, Andrew King

Congratulations! You are the proud owner of a fishing company. To satisfy your investors, you
should operate your fishing fleet to maximize the value of your assets at the end of the game.
Each round you must decide:
1. How many ships to have (by ordering the construction of ships, or by buying/selling them at
auction).
2. Where to allocate your ships: the Coastal and Deep Sea fishing areas or the Harbor.
Your goal is to maximize your assets.
Your total assets equal the sum of your bank balance plus the current market value of your ships. The
market value of ships is determined by the most recent market price for ships (as determined by
trades, auction, or salvaging).
Income:

You make money by: selling your catch at $20 per fish, selling your ships to
other companies, and earning interest on your bank account.1

Expenses:

You incur expenses by: buying ships at auction, ordering the construction of new
ships, operating and maintaining your ships, and paying interest on any funds you
borrow to finance your operation.1

You earn interest if your minimum bank balance in any year is positive. You borrow and pay interest if your minimum bank balance during the year is

negative. Note: as in reality, you incur expenses to operate and maintain your fleet before you receive revenue from your catch. Therefore you may need to
borrow from the bank, and pay interest on that loan, even if your operation is highly profitable. You will always be able to borrow whatever you need to finance
your operation.

Copyright 2011, John Sterman and Andrew King. This work is licensed under the Creative Commons AttributionNoncommercial-No Derivative Works 3.0 Unported License. To view a copy of this license visit
http://creativecommons.org/licenses/by-nc-nd/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San
Francisco, California, 94105, USA.

INTRODUCTION TO FISHBANKS
John Sterman, Andrew King

Buying and Selling Ships

You can change the size of your fleet by buying or selling ships at auction from the bank or another
company, ordering new ships from the shipyard, or by salvaging ships. Ships cannot be lost or
damaged.
Auctions:

Ships can be purchased from the bank or another company and can be used
immediately. You can only bid on ships at auction if the bank or another
company chooses to offer them.

Orders:

Ships can be ordered from the shipyard for $300 per ship. They are delivered
next year.

Salvage:

Contact your instructor to find out what salvage options, if any, are available.

The Fishery
Stocks:

Two fishing areas are available: 1) a large deep sea fishery, and 2) a smaller
coastal fishery. Current fish stocks are close to their maximum levels.

Recruitment:

Fish populations grow through natural births (recruitment) and decrease through
natural deaths and harvesting. Net recruitment (births less natural mortality)
depends on fish density and is an inverted U shape: when there are no fish,
there can be no births. When the fish stock is at the maximum the ecosystem can
support, net recruitment is also zero. Net recruitment reaches a maximum at an
intermediate level of fish density. Fish mature in one year.

Harvest:

Your total fish catch is influenced by the number and allocation of your ships,
ship effectiveness (catch per ship per year), and the weather. Ship effectiveness
depends on fish density. Weather varies randomly each year, but is the same in
both the coastal and deep fisheries for all teams.
Location
Deep Sea
Coast
Harbor

Maximum Catch
25 Fish/year
15 Fish/year
0

Operating Cost/Ship*
$250/ship/year
$150/ship/year
$50/ship/year

*Operating costs remain fixed regardless of the catch.

Ship Effectiveness: The number of fish caught per ship each year depends on the normal productivity
of the area where the ship is operating, and on the density of the fish in the area.
Thus catch levels may fall as stocks decline.
November 17, 2011