In addition, because property rights represent an investment, they are believed to help fishermen to see more clearly the benefits of managing for the long-term health and productivity of fishery resources. Under an IFQ program, fishermen are allocated percentages of a total allowable catch, which is set by fishery managers based on an estimated sustainable catch level. Quota holders possess some of the privileges of property rights, but not others. For example, they can decide when and how to take their share of the quota, but they cannot control the amount of quota allocated. There are different methods of allocating quota shares.
Auctions are one alternative and have two benefits.
First, they allow quota to be distributed to those fishermen who place the highest value on them and, second, they provide revenue that can be used to offset negative distributional effects of the allocation. Even if it were not, public support for charging for something that has generally been free in the past would be about as scarce as that for taxes. Allocations based on some sort of criteria, such as past history, although often complex and contentious, are more politically feasible and more commonly used in practice. Once allocated, quota is valued for the right it provides to catch fish. ITQ programs allow fishermen who desire more quota than they received through initial allocations to purchase additional shares.