Select issue
Silva Fennica 1926-1997
1990-1997
1980-1989
1970-1979
1960-1969
1950-1959
1940-1949
1926-1939
Acta Forestalia Fennica
1992-1999
1984-1991
1974-1983
1968-1973
1953-1968
1933-1952
1913-1932
Articles containing the keyword 'oligopsony'
Category : Research article
article id 598,
category
Research article
(2001).
Interdependence of the sawlog, pulpwood and sawmill chip markets: an oligopsony model with an application to Finland.
Silva Fennica
vol.
35
no.
2
article id 598.
https://doi.org/10.14214/sf.598
Abstract |
View details
|
Full text in PDF |
Author Info
The interdependence of the markets for pulpwood, sawlogs and sawmill chips is analysed using a short-run model, which accommodates the alternative competition structures of wood buyers. We propose that imperfect competition in the pulpwood market tends to make the sawmills owned by the pulp and paper companies larger than the independent ones, even in the absence of transactional economies of integration. The impact of the wood market competition pattern on the profits of the forest owners and forest industry firms depends upon a firm-capacity structure, wood supply elasticities, and business cycles in the output markets. The numerical application of the model to the Finnish softwood market suggests that inflexibility of production capacities tends to make the wood demand rather insensitive with respect to price. Only the large firms, which all produce both pulp and sawnwood, may have oligopsony power under some conditions. Integrated production can increase competition in the sawlog market via the wood chip market.
-
Kallio,
Helsinki School of Economics, Department of Economics and Management Science, P.O. Box 1210, FIN-00101 Helsinki
E-mail:
maarit.kallio@hkkk.fi
Click this link to register to Silva Fennica.
If you are a registered user, log in to save your selected articles for later access.
Your selected articles
Silva Fennica ·
Finnish Society of Forest Science
