# A groundwater market model

arXiv: https://arxiv.org/abs/2501.14071 · HTML: https://mlsanity.com/paper/2501.14071/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 23 Jan 2025.

## Built on by (most cited first, 1 of 1)

- [Multi-Agent Reinforcement Learning for Greenhouse Gas Offset Credit Markets](https://mlsanity.com/paper/2504.11258/) (2025)

## Abstract (arXiv)

We introduce the problem of groundwater trading, capturing the emergent groundwater market setups among stakeholders in a given groundwater basin. The agents optimize their production, taking into account their available water rights, the requisite water consumption, and the opportunity to trade water among themselves. We study the resulting Nash equilibrium, providing a full characterization of the 1-period setting and initial results about the features of the multi-period game driven by the ability of agents to bank their water rights in order to smooth out the intertemporal shocks.