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The Social Loss from Imperfect Competition--The Case of the Swedish Pulpwood Market

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  • Brannlund, Runar

Abstract

In this econometric analysis, the Swedish roundwood market is divided into two submarkets: the sawtimber market, which consists of many buyers and sellers, and the pulpwood markets, which consists of few buyers who collaborate in purchasing cartels. The two markets are interrelated through cross-price effects. The main issue is to quantify the effects on social welfare if the pulpwood market were competitive. The results show that a competitive pulpwood market should bring about a shift in the market structure in the sense that the pulp industry would expand its capacity at the expense of the sawmill industry. Copyright 1989 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Brannlund, Runar, 1989. "The Social Loss from Imperfect Competition--The Case of the Swedish Pulpwood Market," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(4), pages 689-704.
    • Handle: RePEc:bla:scandj:v:91:y:1989:i:4:p:689-704
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    Cited by:

    1. Kanieski da Silva, Bruno & Tanger, Shaun & Marufuzzaman, Mohammad & Cubbage, Frederick, 2022. "Perfect assumptions in an imperfect world: Managing timberland in an oligopoly market," Forest Policy and Economics, Elsevier, vol. 137(C).
    2. 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.

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