ABSTRACT
In principle, in a competitive water use rights market, supply and demand are equated and the different resource valuations of different agents participating in the market converge to an equilibrium price. This would be the case if water use rights were homogeneous goods. However, several researchers have found that water use rights are heterogeneous, and the price varies according to their attributes (Crouter 1987; Colby et al. 1993; Bjornlund and McKay 2002; Ganderton 2002).
