User:Nuggethunter/sandbox

Economics
Globalisation and increased demand for fish has led multinational corporations (MNCs) to gain economic power over national governments, fishing-dependent communities of developing countries and the ecosystem. MNCs regularly catch more than 200 species in over 100 countries and territories and the fish harvested by MNCs are crucial resources for both marine market and biodiversity thus earning a profit on them negatively impacts the environment.

Yearly reports of the inspected (13) MNCs demonstrate that the extent to which these firms consider sustainability as a business strategy varies across them and it seems that many continue to treat the environment as separate to their business rather than integral to it. Sustainable fishing practises motion may come from governments or consumers, however, the power gained from earning profit and the possibility of maximising it triggers entrepreneurs to pursue self-interest decisions that they would not otherwise make. Furthermore, global companies, capable of influencing policy-making, became resilient to the aforementioned pressure and continue to threaten both local communities and ecosystems.

Each firm being motivated by receiving maximised revenue causes the fish stocks to be overexploited. MNCs' decision-making could be explained through the concept of game theory where companies interact in a prisoner's dilemma game with each other. Every firm can decide on the number of fish caught taking into account other companies' strategies. The competitive market, the rivalry of resources and the desire of maximised profit result in the market allocation that deviates from the environmentally-friendly outcome leading to excess supply, wasteful practises and the tragedy of the commons.

Revenue maximisation and the prisoner's dilemma game are powerful aspects of economics which cause valuing private benefits more than external costs. This phenomenon leads to the conflict between economics and the environment which result in overexploitation of shared resources.