Abstract
A new method of calculating groundwater pumpage is used to estimate water demand. These results are used, via the Gisser‐Sanchez model, to show that pumpage regulation is unlikely to be beneficial in the Texas High Plains. A sensitivity analysis is performed on present value profits under optimal control and competitive schemes, using different (water demand) slope and intercept values. The results indicate that the Gisser‐Sanchez rule is useful in determining the divergence in pumpage time paths and percentage difference in profits, under the two schemes, but it is not insightful in determining the nominal difference in profits.

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