IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v71y1995i2p193-206.html
   My bibliography  Save this article

Oligopsony, Vertical Integration, and Output Substitution: Welfare Effects in U.S. Pulpwood Markets

Author

Listed:
  • Brian C. Murray

Abstract

Oligopsonistic commodity markets can induce upstream vertical integration by the input demanders. The associated price distortion can also induce output substitution by the commodity's suppliers. These phenomena are considered in the context of pulpwood markets in the U.S. The estimated welfare effects of an oligopsony distortion indicate relatively small deadweight losses but considerable wealth transfers from open market producers to integrated pulpwood processing firms. Correcting the distortion would have little effect on aggregate output levels from the forest sector, but would alter the composition of output between industry and nonindustry sources.

Suggested Citation

  • Brian C. Murray, 1995. "Oligopsony, Vertical Integration, and Output Substitution: Welfare Effects in U.S. Pulpwood Markets," Land Economics, University of Wisconsin Press, vol. 71(2), pages 193-206.
    • Handle: RePEc:uwp:landec:v:71:y:1995:i:2:p:193-206
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/3146500
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stordal, Stale & Nyrud, Anders Q., 2003. "Testing roundwood market efficiency using a multivariate cointegration estimator," Forest Policy and Economics, Elsevier, vol. 5(1), pages 57-68, January.
    2. Bingham, Matthew F. & Prestemon, Jeffrey P. & MacNair, Douglas J. & Abt, Robert C. & Bingham, Matthew F., 2003. "Market structure in U. S. southern pine roundwood," Journal of Forest Economics, Elsevier, vol. 9(2), pages 97-117.
    3. Assogba, Noel Perceval & Zhang, Daowei, 2022. "The conservation reserve program and timber prices in the southern United States," Forest Policy and Economics, Elsevier, vol. 140(C).
    4. Manitra A. Rakotoarisoa, 2023. "Fixed costs, market power and revenue shares of the asymmetric firms," SN Business & Economics, Springer, vol. 3(3), pages 1-34, March.
    5. Stordal, Stale, 2004. "Impacts of the European Economic Area Agreement on the structure and concentration of roundwood sales in Norway," Forest Policy and Economics, Elsevier, vol. 6(1), pages 49-62, January.
    6. Silva, Bruno Kanieski & Cubbage, Frederick W. & Gonzalez, Ronalds & Abt, Robert C., 2019. "Assessing market power in the U.S. pulp and paper industry," Forest Policy and Economics, Elsevier, vol. 102(C), pages 138-150.
    7. Love, H. Alan & Burton, Diana M., 1999. "A Strategic Rationale For Captive Supplies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.
    8. Hervani, Aref A., 2005. "Can oligopsony power be measured? The case of U.S. old newspapers market," Resources, Conservation & Recycling, Elsevier, vol. 44(4), pages 343-380.
    9. Yin, Runsheng & Newman, David H. & Siry, Jacek, 2002. "Testing for market integration among southern pine regions," Journal of Forest Economics, Elsevier, vol. 8(2), pages 151-166.
    10. Kuuluvainen, Jari & Korhonen, Jaana & Wang, Lanhui & Toppinen, Anne, 2021. "Wood market cartel in Finland 1997–2004: Analyzing price effects using the indicator approach," Forest Policy and Economics, Elsevier, vol. 124(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:71:y:1995:i:2:p:193-206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.