Overcapitalization refers to an actual capital stock that is in excess of that optimum capital stock required to produce some desired target output level. This desired output level can be either a regulated output level, such as total allowable catch or the capacity output level in an unregulated situation (i.e., without total allowable catches). Overcapitalization can be technological, in which case the optimum capital stock is that which corresponds to the minimum quantity of capital stock as determined by the production technology required to produce the desired output level, and given some capital utilization rate. Overcapitalization can be economic, in which case the optimum capital stock is that which minimizes the costs of producing the desired output level.