It has long been recognized that unrestricted exploitation of fish populations inevitably leads to inefficiency.^ At best, the absence of controls brings about fishing effort levels that exceed those at which the marginal cost of a fish equals its value to consumers. At worst, this allocative inefficiency is compounded by a technical inefficiency: A given sustained yield is achieved with higher than necessary expenditures of effort. By suitably restricting fishing activity through an appropriate system of catch taxes, a regulatory body could ensure efficient exploitation of a fish population. The regulatory approaches actually used in practice, however, include technological controls (restrictions on the size, power, and other cliaracteristics of boats; port .turnaround time; or fishing gear) and.limitations on season length or total catch. Each of these regulatory measures is flawed in that it introduces inefficiencies of its own.