Seminar
Harold Houba (Vrije Universiteit Amsterdam): “Market Power in Water Markets."
Tuesday November 28, Harold Houba (Vrije Universiteit Amsterdam) will give a seminar on his paper entitled “Market Power in Water Markets."
The seminar will take place in room B0079 between 12:00-13:00.
Lunch will be provided
Abstract:
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.