Go European! A Transformative Journey Across Dreams, Models, Expectations, and Realities
摘要
This paper examines market price differences of identical products sold by the same international companies operating in Albania and the EU markets by assessing four distinct perspectives. It reveals that (i) the economic models and common sense would predict that prices of identical products, sold by the same operators in an open market, based on PPP factors should be lower in Albania, or converge toward equalization through the EU integration process; (ii) the expectations of businesses and consumers in Albania, based on two surveys conducted during Spring 2024 with 150 consumers and 30 businesses, suggests that there should be minor price differences (average +5.5% higher in Albania for consumers and +2.7% for businesses); (iii) the reality, based on price information collected for 150 consumer products, randomly chosen from 13 product categories and sold in Albania by three major European companies, indicates that during Spring 2024, the average price of the products in the Albanian market was +79.7% higher than the average price of the same products, sold by the same operators in the EU markets. The paper analyzes the main factors enabling significant price differences between the Albanian and the EU markets, the burden and cost for the consumers, the detrimental effects for the Albanian society and the economy, and provides consumer-centered, market-based recommendations.