Are mussel seed collectors responsive to economic incentives? Empirical evidence from the Benthic Resource Management Areas in Chile

We specify a model to analyze the participation and supply decisions of coastal producers performing with mussel seed uptake.

We empirically specify and estimate the model for a sample of artisanal fishermen in Southern Chile, using a panel data set between 2008 and 2013. This period presents large changes in producer engagement and supplied quantities. The results suggest that temporal changes in supply are mainly explained by price, cost, and contract variables. Moreover, socioeconomic variables help to explain the differences between different producer groups. We conclude that seed uptake is dependent on supply conditions and the development of the external market and that policies aiming to promote previous activity should consider the interdependence between the markets.