Stabilization of employment in an uncertain open-access resource economy

We consider a resource management problem in which the management objective is to minimize fluctuations in resource economics. Stabilizing management policies consist of memoryless state feedback control strategies for a class of discrete time resource models which contain unknown but bounded fluctuations. The underlying theory is based on conditions developed for a Lyapunov type stability of sets. The design of the stabilizing policies is illustrated by a simulation example from resource economics. Specifically, employment of fishermen is stabilized by using a subsidizing and taxing policy in an open access common-property fishery in which the value of the resource and the resource level fluctuate, and where entry and exit dynamics are determined by fluctuating revenues obtained from the fishery.