Study On The Influence Mechanism Of Partial Cross Ownership Of Papermaking Enterprises On White Cardboard Price

Since June 2020,major manufacturers of white cardboard have been issuing"price hike letters",and the price of white cardboard has been rising gradually.Until January 2021,the price of white cardboard has witnessed a rapid rise,with a rise of over 80%in less than a month and a high level within 6 months.With the continuous implementation of the "ban on waste" and the promotion of the elimination of outdated production capacity,the paper industry has become one of the key transformation industries,the number of enterprises is decreasing,and the market concentration is gradually increasing.At the same time,the outbreak of COVID-19 in early 2020 has brought a certain impact on the world economy.Many netizens have speculated that the price increase is mainly due to the epidemic and the "ban",but is it really the case?In the process of searching for evidence,it was found that during the period when the price of white card was high,there was partial cross-ownership among oligopolistic enterprises of white card,and after the partial cross-ownership relationship disappeared,the price of white card dropped rapidly and returned to normal,which makes people suspect that there are other driving factors behind the price rise of white card.Therefore,in order to explore the main reasons for the price rise of white card paper,based on the existing background,data and environment,this paper studies the influence mechanism of the existence of partial cross-ownership on the price of white card paper from the perspective of collusion theory and empirical test.Firstly,this paper reviews and analyzes the relevant foreign and domestic literature from the perspectives of the purpose of the existence of partial cross ownership and its influence on competition.Then,starting from the case of Sinar Mas Paper acquiring Bohui Group,this paper reviews the market share changes in the white cardboard market in recent four years,and points out that there may be two conditions for collusion in the white cardboard market:first,the existence of partial cross-ownership,which is the main object of this paper;Second,there is a multi-market contact between the main producers of white cardboard,and occupy a large share in the white cardboard market,coated paper market,double rubber paper market and pulp market.At the same time,it is also pointed out that there may be collusion in the white cardboard market,that is,the operating profit rate of the main producers of white cardboard has increased significantly during the period of partial cross-ownership,and the profit during the period of existence is more than twice or even three times of that before and after the existence.Therefore,based on the above case facts,this paper explores the influence of partial cross ownership on white card price from two parts:theory and demonstration.In the theoretical research part,this paper mainly discusses the influence of unilateral partial cross-ownership on enterprise collusion through Stuckelberg’s output competition model and the introduction of infinite repeated game theory.The influence of the existence of partial cross ownership on the collusive motive and collusive stability of enterprises is discussed from two aspects:the holding enterprises do not take the measures that affect the decision-making of the held enterprises and the measures that affect the decision-making of the held enterprises.It is found that there is unilateral partial cross ownership relationship between competing enterprises and only the enterprises do not take the measures that affect the decision-making of the held enterprises.The stability of collusion depends on the maximum critical discount factor of different firms.In addition,when the shareholding enterprises comprehensively consider the profit maximization of themselves and their shareholders,the collusion stability of the enterprises depends on the size of the shareholding ratio,and in order to maintain the collusion stability,the shareholding enterprises will not hold a large number of shareholding enterprises.In the empirical research part,the paper uses the price data of white cardstock to establish a difference-breakpoint model,removes the interference of other factors,quantifies the actual impact of partial cross-ownership on the price of white cardstock,and finds that the existence of partial cross-ownership leads to the price of white cardstock rising by 26%to 40%.The results of the paper show that the existence of partial cross-ownership among papermaking enterprises has a positive significance for promoting their collusion,unilateral partial cross-ownership can increase the motivation of the holding enterprises to promote collusion,unilateral small shareholding can increase the stability of the collusion among papermaking enterprises,and then promote the enterprises to set monopoly prices and obtain high profits.The conclusion of this study is consistent with the actual situation of white cardstock market,which theoretically provides an economic explanation for the influence of partial cross-ownership among papermaking enterprises on white cardstock price,and puts forward relevant suggestions from two aspects of anti-monopoly legislation and law enforcement.