Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater
Using data from Pakistan's Punjab, the authors examine monopoly power in the market for groundwater - irrigation water extracted using private tubewells - a market characterized by barriers to entry and spatial fragmentation. Simple theory pre...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/06/1490132/monopoly-power-distribution-fragmented-markets-case-groundwater http://hdl.handle.net/10986/19602 |
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okr-10986-196022021-04-23T14:03:43Z Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater Jacoby, Hanan G. Murgai, Rinku Rehman, Saeed Ur BORE HOLE CANAL CLOSURE CANAL IRRIGATION CANAL WATER CANALS CHANNEL CHANNELS CONVEYING CROP YIELDS CULTIVATED AREA DEMAND FOR WATER DISCHARGE DROUGHT EXPORT FARMERS FARMING GROUNDWATER GROUNDWATER COSTS GROUNDWATER EXTRACTION GROUNDWATER MARKET GROUNDWATER PRICES GROUNDWATER PUMPING GROUNDWATER USE IRRIGATION IRRIGATION WATER MONOPOLY POWER PEAK DEMAND PERIODS PEAK-LOAD PRICING PRICE DISCRIMINATION RAINFALL RESERVOIRS RIVERS SEEPAGE WATER ALLOCATION WATER AVAILABILITY WATER DELIVERIES WATER DEMAND WATER FLOW WATER MANAGEMENT WATER MARKETS WATER QUALITY WATER SUPPLIES WATER VOLUME WATERCOURSES Using data from Pakistan's Punjab, the authors examine monopoly power in the market for groundwater - irrigation water extracted using private tubewells - a market characterized by barriers to entry and spatial fragmentation. Simple theory predicts that tubewell owners should price-discriminate in favor of their own share tenants. And this analysis of individual groundwater transactions over an 18-month period confirms such price discrimination. And among those studied, tubewell owners and their tenants use considerably more groundwater on their plots than do other farmers. The authors also provide evidence that monopoly pricing of groundwater leads to compensating - albeit small - reallocations of canal water, which farmers exchange in a separate informal market. Despite the substantial misallocation of groundwater, a welfare analysis show that monopoly pricing has limited effects on equity and efficiency. In the long run, a policy aimed at eliminating monopoly pricing would do little to help the poorest farmers. 2014-08-21T20:08:55Z 2014-08-21T20:08:55Z 2001-06 http://documents.worldbank.org/curated/en/2001/06/1490132/monopoly-power-distribution-fragmented-markets-case-groundwater http://hdl.handle.net/10986/19602 English en_US Policy Research Working Paper;No. 2628 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Pakistan |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
BORE HOLE CANAL CLOSURE CANAL IRRIGATION CANAL WATER CANALS CHANNEL CHANNELS CONVEYING CROP YIELDS CULTIVATED AREA DEMAND FOR WATER DISCHARGE DROUGHT EXPORT FARMERS FARMING GROUNDWATER GROUNDWATER COSTS GROUNDWATER EXTRACTION GROUNDWATER MARKET GROUNDWATER PRICES GROUNDWATER PUMPING GROUNDWATER USE IRRIGATION IRRIGATION WATER MONOPOLY POWER PEAK DEMAND PERIODS PEAK-LOAD PRICING PRICE DISCRIMINATION RAINFALL RESERVOIRS RIVERS SEEPAGE WATER ALLOCATION WATER AVAILABILITY WATER DELIVERIES WATER DEMAND WATER FLOW WATER MANAGEMENT WATER MARKETS WATER QUALITY WATER SUPPLIES WATER VOLUME WATERCOURSES |
| spellingShingle |
BORE HOLE CANAL CLOSURE CANAL IRRIGATION CANAL WATER CANALS CHANNEL CHANNELS CONVEYING CROP YIELDS CULTIVATED AREA DEMAND FOR WATER DISCHARGE DROUGHT EXPORT FARMERS FARMING GROUNDWATER GROUNDWATER COSTS GROUNDWATER EXTRACTION GROUNDWATER MARKET GROUNDWATER PRICES GROUNDWATER PUMPING GROUNDWATER USE IRRIGATION IRRIGATION WATER MONOPOLY POWER PEAK DEMAND PERIODS PEAK-LOAD PRICING PRICE DISCRIMINATION RAINFALL RESERVOIRS RIVERS SEEPAGE WATER ALLOCATION WATER AVAILABILITY WATER DELIVERIES WATER DEMAND WATER FLOW WATER MANAGEMENT WATER MARKETS WATER QUALITY WATER SUPPLIES WATER VOLUME WATERCOURSES Jacoby, Hanan G. Murgai, Rinku Rehman, Saeed Ur Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater |
| geographic_facet |
South Asia Pakistan |
| relation |
Policy Research Working Paper;No. 2628 |
| description |
Using data from Pakistan's Punjab,
the authors examine monopoly power in the market for
groundwater - irrigation water extracted using private
tubewells - a market characterized by barriers to entry and
spatial fragmentation. Simple theory predicts that tubewell
owners should price-discriminate in favor of their own share
tenants. And this analysis of individual groundwater
transactions over an 18-month period confirms such price
discrimination. And among those studied, tubewell owners and
their tenants use considerably more groundwater on their
plots than do other farmers. The authors also provide
evidence that monopoly pricing of groundwater leads to
compensating - albeit small - reallocations of canal water,
which farmers exchange in a separate informal market.
Despite the substantial misallocation of groundwater, a
welfare analysis show that monopoly pricing has limited
effects on equity and efficiency. In the long run, a policy
aimed at eliminating monopoly pricing would do little to
help the poorest farmers. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Jacoby, Hanan G. Murgai, Rinku Rehman, Saeed Ur |
| author_facet |
Jacoby, Hanan G. Murgai, Rinku Rehman, Saeed Ur |
| author_sort |
Jacoby, Hanan G. |
| title |
Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater |
| title_short |
Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater |
| title_full |
Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater |
| title_fullStr |
Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater |
| title_full_unstemmed |
Monopoly Power and Distribution in Fragmented Markets : The Case of Groundwater |
| title_sort |
monopoly power and distribution in fragmented markets : the case of groundwater |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/06/1490132/monopoly-power-distribution-fragmented-markets-case-groundwater http://hdl.handle.net/10986/19602 |
| _version_ |
1764440141013712896 |