Tomori, FrançeskaAnsink, ErikHouba, HaroldHagerty, NickBos, Charles2024-01-182024-01-182023-10Tomori, Françeska, Erik Ansink, Harold Houba, Nick Hagerty, and Charles Bos. 2023. “ Market Power in California's Water Market.” American Journal of Agricultural Economics 1–26. https://doi.org/10.1111/ajae.124340002-9092https://scholarworks.montana.edu/handle/1/18268We 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.en-UScc-by-nc-ndhttps://creativecommons.org/licenses/by-nc-nd/4.0/Californiamarket powerNash-Cournotwater marketsArticle