The Gulf of Mexico red snapper individual fishing quota program was implemented in 2007 to reduce overcapacity and eliminate derby fishing conditions in the commercial fishery. The five-year review of the program reveals that the number of vessels and fishing trips declined by 17% and 29%, respectively. The review also found the fishery was open year round for the first time in 20 years. Between 2007 and 2011, inflation-adjusted dockside, allocation (leased quota), and quota share prices rose by 7%, 37%, and 145%, respectively, suggesting the profitability of the fleet improved. Gini and Herfindahl-Hirschman indices indicate the distribution of shares is highly unequal, but shareholders do not have market power. The absence of quota overages and lower aggregate discard levels suggest resource stewardship improved. However, discards in the eastern Gulf remain high due to stock range expansion and insufficient allocation. This article also describes lessons learned from the five-year review.

JEL Codes: Q22, Q58.