The determination of newsprint prices. This paper presents a model of price determination for newsprint in eastern North America. The first part of the paper contains a theoretical analysis of the phenomenon. The proposed theory indicates that costs and operating rate are the main determinants of newsprint prices. The model is then estimated with quarterly data extending from 1933 to 1971. The threshold regression technique is used to take account of the observed rigidities in price variations. The numerical results are in complete agreement with the suggested theory. They also indicate that the industry break-even point, where long-run equilibrium price meets average total cost, corresponds to an