In a recent issue of this Review, Vernon L. Smith advanced a general miiodel of the economiiic aspects of production from natural resources. Unfortunately, Smith makes a nuimber of unsound assumptions and methodological errors in formulating his general model of natural resource exploitation. We shall show, using commilercial fishing as a particular example, that the structure of Smith's model leads to absurd conclusions. In addition, we shall develop the correct specification for the competitive recovery of a fishery resource.