Competition and Oligopsony in the Douglas Fir Lumber Industry

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....