Abstract
This study focuses on the domestic distribution of sawlog harvested in the Takahara forestry area in Tochigi Prefecture. It aimed to reveal the asymmetry of information on timber transactions between sellers and buyers. The targeted area is located in the northern part of the Kanto Plain, where large-scale sawmills are in production and where contracts between the Tochigi Prefectural Forest Owners’Co-operative Association and areal sawmills have existed since 2013. Interview surveys on the information asymmetry between each economic agent involved in a timber transaction were conducted from April 2018 to February 2020. Results reveal that although the unique points of sawlogs are recognized during transactions, there is a mutual shortage of sawlog production and demand information in the transaction between the log-auction organization and large-scale sawmills. The shortage of information on the sawlog supply-side may lead adverse selection, and sellers and buyers of high-quality sawlogs may withdraw from transactions. The areal sawmills evaluate sawlog quality and log scaling skill at the log-auction organization, and the aggregation and distribution of supply information by the log-auction organization leads to stable transactions. Because the log-auction organization plays an important role for small-scale sawmills, we need to research the functions of log-auction organizations.
