Many water allocation agreements in transboundary river basins are inherently unstable. Due to stochastic river flow …, agreements may be broken in case of drought. The objective of this paper is to analyze whether water allocation agreements can be …

We estimate market power in California's thin water market. Market frictions 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 … typical water market setting. We then use this solution to estimate market power in a newly assembled dataset on California …