Optimal Capacity Decisions in a Developing Fishery Colin W. Clark University of British Columbia Vancouver. Canada Anthony T. Charles Department of Fisheries and Oceans Vancouver. Canada John R. Beddington International Institute for Environment and Development London, England Marc Mangel University of California Davis. California Abstract The problem of estimating optimal fishing ca- pacity for a developing fishery is discussed, using the methods of Bayesian decision analysis. The results obtained indicate that quite good decisions can often be made on the basis of limited prior information as to fish stock productivity, partic- ularly if a conservative approach allowing for subsequent in- creases in capacity is employed. Marine Resource Economics. Volume 2, Number I 0738-1360/85/O3OO25-OO$02.O0/0 Copyright © 1985 Crane, Russak & Company. Inc. 25