Shark hunting: On the vulnerability of resources with heterogeneous species

This paper examines the unprecedented decimation of sharks. In accordance with the biological characteristics and the economic environment of sharks, we extend the Brander-Taylor model of renewable resources and trade to a resource with a continuum of species which are heterogeneous with respect to their growth rate. The model implies that heterogeneity increases the vulnerability of a resource as relatively abundant species make harvesting economically viable even though slow-growing species are driven to extinction. The empirical analysis assesses the fate of sharks in the light of the model and finds that the likelihood of extinction is, indeed, significantly greater for shark species which exhibit low intrinsic growth.