Project summary: The management of the Norwegian coastal resources can be said to have three major long-run objectives, expressed in various government publications. Industrial activities in the coastal zone shall generate as much income (value added) to the Norwegian com munity as possible, it must be environmentally sustainable, and its use shall give regional (rural) benefits. To realise the incomegenerating potensial of the Norwegian coast all industrial uses of the coast must be seen in conjunction. The public authori ties which today allocate rights and resources of the coastal zone do not have all the necessary information to predict who will maximis valueadding. There is an increasing interest by states to use market based allocation mechanisms. The overall objectiv e here is to analyse the potential of market-based mechanisms to allocate rights and resources in the coastal zone, based on existing economics literature. More spesifically we will investigate how the use of tradable rights and aucti will help achieve the three public objectives stated above or make their built-in dilemmas more pronounced, compared to the current management regime. We will limit our investigation to these mechanims’ potential in allocating rights/resources between tr adiotional small-scale fisheries vs. fish-based tourism-industry and traditional small-scale fisheries vs. aquaculture.