This paper presents an economic model that incorporates a prey-refuge, which alters predator-prey dynamics by modifying the strength of species interdependencies and indirectly changing economic incentives. The model consists of a two-stage game, where fisheries have the option to cooperate in selecting the refuge size, and then behave non-cooperatively in harvesting under the chosen refuge size. It is shown that the unique feedback Nash equilibrium in linear strategies is characterized by a lower catch rate in the presence of the refuge, resulting in gains and losses for fisheries due to the different trajectories of stocks. Numerical simulations demonstrate the potential for cooperative surplus if the fisheries choose an appropriate refuge size in the first stage. The paper argues that, in situations where multispecies management is not feasible, cooperative behavior on artificial refuges is welfare relevant.