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Tomori, F., Ansink, E., Houba, H., Hagerty, N. and Bos, CharlesS. (2024). Market power in California's water market American Journal of Agricultural Economics, 106(3):1274--1299.

  • Journal
    American Journal of Agricultural Economics
View publication

We estimate market power in California's surface water market. Market power may distort the potential welfare gains from water marketing. We use a Nash-Cournot model and derive a closed-form solution for the extent of market power in a water market setting. We then use this solution to estimate market power in a newly assembled dataset on California's water economy. We show that, under the assumptions of the Nash-Cournot model, market power in this thin market is limited.