Monopoly Power and Distribution in Fragmented Markets: The Case of Groundwater
Hanan Jacoby · Rinku Murgai · Saeed ur Rehman
Jan 2001 · World Bank Publications
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Evidence from Pakistan's Punjab indicates that monopoly power in the market for groundwater (irrigation water extracted using private tubewells) results in a substantial resource misallocation. But despite this substantial misallocation of groundwater, a welfare analysis shows that monopoly pricing of groundwater has limited effects on equity and efficiency. Policies aimed at eliminating monopoly pricing would do little to help the poorest farmers.
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