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A Comparative Analysis of Antitrust Regulations in the Agricultural Sector in Israel, the US and the EU

Author

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  • Kachel, Yael
  • Finkelshtain, Israel

Abstract

The Israeli agricultural sector enjoys a far-reaching exemption from antitrust regulation. The exemption includes farmers and wholesalers of agricultural products and enables restrictive arrangements, which may reduce competition. A comparative analysis of antitrust regulation in Israel, the European Union and the United States shows that the exemption in Israel is relatively narrow with regard to the products included but much wider with regard to the exempted firms. There are economic arguments which support exempting farmers and farmers' associations from the prohibition of restrictive arrangements to enable cooperation in production, marketing, promotion and research, but the exemption of wholesalers of agricultural products could not be justified on the grounds of economic efficiency.

Suggested Citation

  • Kachel, Yael & Finkelshtain, Israel, 2010. "A Comparative Analysis of Antitrust Regulations in the Agricultural Sector in Israel, the US and the EU," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 38(1).
  • Handle: RePEc:ags:jlorco:163880
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    File URL: http://purl.umn.edu/163880
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    References listed on IDEAS

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    1. Paolo Buccirossi & StÈphan Marette & Alessandra Schiavina, 2002. "Competition policy and the agribusiness sector in the European Union," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 373-397, July.
    2. Lawrence E. Haller, 1992. "Branded Product Marketing Strategies in the Cottage Cheese Market: Cooperative versus Proprietary Firms," Food Marketing Policy Center Research Reports 016, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    3. Mats Bergman, 1997. "Antitrust, Marketing Cooperatives, and Market Power," European Journal of Law and Economics, Springer, vol. 4(1), pages 73-92, January.
    4. Madhavan, Ananth N & Masson, Robert T & Lesser, William H, 1994. "Cooperation for Monopolization? An Empirical Analysis of Cartelization," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 161-175, February.
    5. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    6. Jacquemin, Alexis & Slade, Margaret E., 1989. "Cartels, collusion, and horizontal merger," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 7, pages 415-473 Elsevier.
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    Cited by:

    1. Nowak, Piotr & GORLACH, KRZYSZTOF, 0. "Rolnicy I Spółdzielczość W Polsce: Stary Czy Nowy Ruch Społeczny?," Village and Agriculture (WieÅ› i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, issue 1.1.

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