This in-depth analysis of the Douglas fir lumber industry investigates the relationship between industry structure, firm behavior, and performance outcomes. While the lumber production sector exemplifies characteristics of pure competition—with numerous mills and firms producing homogeneous products—the timber input market operates as an oligopsony. In this setting, a few large buyers wield significant influence, leading to price disparities and market power that smaller firms cannot match. The study highlights the dichotomy between competitive lumber production and the noncompetitive dynamics of timber acquisition. The book explores key issues such as economies of scale in production, market concentration, and the elasticity of demand and supply for both timber and lumber. By scrutinizing the auction markets for federal timber and the effects of concentrated timberland ownership, it sheds light on policy questions like the equitable distribution of public resources and the economic efficiency of market structures. Combining theoretical insights with empirical data, this study offers valuable findings for economists, industry stakeholders, and policymakers aiming to balance competition and sustainability in resource management. This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1966.
