Journal of Forest Economics > Vol 17 > Issue 1

Competition in the global pulp and paper industries – An evaluation based on three approaches

Hanna Karikallio, Petri Mäki-Fränti, petri.maki-franti@ptt.fi , Niko Suhonen
 
Suggested Citation
Hanna Karikallio, Petri Mäki-Fränti and Niko Suhonen (2011), "Competition in the global pulp and paper industries – An evaluation based on three approaches", Journal of Forest Economics: Vol. 17: No. 1, pp 91-104. http://dx.doi.org/10.1016/j.jfe.2010.09.004

Publication Date: 0/1/2011
© 0 2011 Hanna Karikallio, Petri Mäki-Fränti, Niko Suhonen
 
Subjects
 
Keywords
JEL Codes:D43F14
Pulp and paper industryLaw of One Price
 

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In this article:
Introduction 
Market structure 
Estimation of price elasticities 
The Law of One Price (LOP) 
Conclusions 

Abstract

This paper uses three different approaches for measuring the tightness of competition in the global pulp and paper markets. First, we evaluate the market shares of the world's largest pulp and paper companies. Second, we estimate the price elasticities of the export demand for pulp and paper. Third, we test the Law of One Price. All three approaches suggest that the pulp and paper markets are competitive in the sense that a single firm, no matter how large, cannot increase the price of its products without losing market shares and experiencing a fall in total revenues.

DOI:10.1016/j.jfe.2010.09.004