{"id":27283,"date":"2026-10-14T08:15:51","date_gmt":"2026-10-14T06:15:51","guid":{"rendered":"https:\/\/altax.al\/?p=27283"},"modified":"2026-10-14T08:15:54","modified_gmt":"2026-10-14T06:15:54","slug":"mirror-of-pricestransparency-for-consumers-but-is-it-enough-to-ensure-genuine-competition","status":"publish","type":"post","link":"https:\/\/altax.al\/en\/mirror-of-pricestransparency-for-consumers-but-is-it-enough-to-ensure-genuine-competition\/","title":{"rendered":"Mirror of prices:Transparency for consumers, but Is It enough to ensure genuine competition?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">On 12 October 2026, Albania launched the <a href=\"https:\/\/pasqyraecmimeve.al\/metodologjia\">Price Observatory<\/a>, a platform designed to provide consumers with comparable information on the prices of essential products. According to the methodology published on the platform, monitoring covers five retail chains, 155 sales outlets, 15 cities, 238 items and 13 product categories. Prices are reported by retailers, while the Ministry of Economy and Innovation states that it verifies the data before publication.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The initiative represents a step towards improving consumer information. However, transparency is not equivalent to a sustained reduction in prices, nor does it automatically lead to stronger competition. Its impact depends on the accuracy and frequency of data updates, the number of participating operators, consumers\u2019 actual ability to change where they shop, and retailers\u2019 responses to the published information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In parallel, the <a href=\"https:\/\/www.kryeministria.al\/newsroom\/ipasqyra-e-cmimeve-dhe-nisma-kurse-nisin-funksionimin-me-shume-transparence-dhe-alternativa-per-konsumatoret\/\">\u201cKURSE\u201d initiative<\/a> aims to offer reduced prices on selected products. To assess its impact, it is necessary to distinguish advertised price reductions from changes in the prices actually paid, savings on the overall household shopping basket, and any potential effects on competition. <a href=\"https:\/\/www.kryeministria.al\/newsroom\/ipasqyra-e-cmimeve-dhe-nisma-kurse-nisin-funksionimin-me-shume-transparence-dhe-alternativa-per-konsumatoret\/\">Public announcements<\/a> use different figures for the offers and products covered. The final number of items and their definitions therefore need to be reconciled in the official documentation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This analysis argues that the public value of the Price Observatory should be assessed against three measurable outcomes: improved access to information, a reduction in the real cost of consumption, and the preservation or strengthening of competition. To this end, it proposes a monitoring methodology combining weekly price observations, a standardised basket index, and an assessment of the platform\u2019s impact through comparisons with suitable control products and sales outlets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Price Observatory: What does it address, and what remains to be proven?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Price is one of the most important factors in consumer decision-making. When households can compare the price of the same product across several shops, they can identify more economical alternatives and exert competitive pressure on retailers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this respect, the Price Observatory can reduce the cost of searching for information and facilitate consumer decision-making. It also establishes a common basis for monitoring prices and identifying differences between operators.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the platform publishes price information reported by retailers. Under its rules, a price is considered representative of a retail chain when it applies in at least 80% of that chain\u2019s outlets. When this threshold is not met, prices are displayed separately, together with the number of stores where they apply. The platform also clarifies that prices are provided for informational purposes and may differ from those charged at checkout.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These rules are important when interpreting the data. A published price should not automatically be treated as a price available in every store, at all times, or for every quantity purchased. Similarly, the lowest advertised price is not necessarily the price paid by most consumers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To determine whether the platform is genuinely improving market outcomes, four questions must be answered:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are the prices actually paid for comparable products falling after accounting for promotions and quality differences?<\/li>\n\n\n\n<li>Is the cost of a stable consumption basket decreasing, rather than only the prices of a few selected products?<\/li>\n\n\n\n<li>Is competition improving between operators, including small shops and independent retailers?<\/li>\n\n\n\n<li>Are published prices accurate, available in stores, and independently verifiable?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>At present, the platform should be assessed as an information tool. Its effects on prices and competition have yet to be demonstrated through empirical evidence.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Price Transparency and Consumer Protection<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Price transparency and consumer protection are related, but they are not the same thing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Transparency<\/em> provides consumers with information. Effective consumer protection requires that the information be accurate, that products be genuinely available, that comparisons be fair, and that consumers have practical alternatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>For example<\/em>, if a product is cheaper in a supermarket located far from a consumer\u2019s home, the savings may be reduced by transport expenses and the time required to make the purchase. If a consumer buys several products together, a price difference on a single item does not necessarily indicate which outlet offers the most economical overall basket.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Comparisons should therefore consider not only the price of an individual item, but also the cost of the basket, product availability, and the costs involved in purchasing the products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another issue is <em>market representativeness<\/em>. Including five retail chains provides a starting point for comparison, but it is not, by itself, sufficient to establish how representative the information is of the entire Albanian market. This requires data on the distribution of sales, the relative importance of different retail channels, and the geographical coverage of sales outlets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Including small shops and independent retailers could broaden the information available and create more equal conditions for comparison. However, participation should be organised through transparent and proportionate criteria so that reporting costs do not become a barrier for smaller operators.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What does a comparison of prices in Albania and Italy tell Us?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">International price comparisons can help identify price differences, but only when they are based on comparable products and selling conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nominal prices alone are insufficient to measure the economic burden on households. A product with a similar price in two countries may represent a very different burden for consumers, depending on income, expenditure patterns, and purchasing power.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a valid comparison, at least the following elements must be harmonised:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Product brand, composition, quality, and quantity;<\/li>\n\n\n\n<li>Regular prices versus promotional prices;<\/li>\n\n\n\n<li>Observation date and actual availability;<\/li>\n\n\n\n<li>Taxes included in the final price;<\/li>\n\n\n\n<li>Exchange rates, when prices are converted into a common currency.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A comparison based on a range of prices can serve as an initial reference, but only a documented comparison of identical products can establish the actual price difference.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason, a comparative table should be published only after the prices have been documented using identifiable sources and clearly stated dates. If such data are unavailable, it is more accurate to present the comparison methodology and defer quantitative conclusions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, the Albania\u2013Italy comparison should not be limited to shelf prices. Explaining price differences requires data on purchase prices, transport, storage, contractual conditions, taxes, and margins at different stages of the retail supply chain.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4. How is the Final Price formed?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The final price of a food product results from several economic stages. Depending on the product, it may include the producer\u2019s or importer\u2019s price, transport, insurance, storage, distribution, financing costs, retail operating expenses, taxes, and operators\u2019 margins.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This structure explains why a price difference cannot automatically be attributed to a single factor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4.1. Exchange Rate and Import costs<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a product is purchased in euros, an appreciation of the lek may reduce the value of the import invoice when expressed in lek. However, the impact on the retail price may occur with a delay, depending on the purchase date, inventories, contracts, and financing arrangements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To assess whether exchange-rate movements have been passed on to consumers, import and retail prices for identical products must be compared, taking into account the time between importation and sale.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Statistical data also require careful interpretation. INSTAT publishes the <a href=\"https:\/\/www.instat.gov.al\/sq\/temat\/cmimet\/indeksi-i-cmimeve-te-importit\/\">Import Price Index<\/a>, but the scope of this indicator covers the industrial activities specified in its methodology. It should not automatically be interpreted as an index of the cost of all imported food products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, consumer inflation and changes in import prices measure different stages of the economic chain. If one indicator falls while the other rises, this raises a question for further analysis, but does not, by itself, prove that retail margins have increased.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4.2. Operating and Financing costs<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Transport, energy, storage, staffing, rent, and inventory financing all affect the cost of retailing. Their per-unit weight may vary according to the size of the operator, sales volume, and logistics arrangements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A large retail chain may spread fixed costs across more units and negotiate more favourable supply terms. A small shop may have less bargaining power and slower inventory turnover.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These differences can produce different prices without necessarily indicating abuse. An assessment must distinguish advantages arising from economic efficiency from those that may result from restrictions on competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4.3. Retail margins and bargaining power<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gross margin is not the same as net profit. It must cover operating expenses and business risks before the net result can be determined.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A high margin therefore does not, by itself, prove abuse, but neither can it automatically be considered justified. The analysis should examine the actual purchase price, rebates, bonuses, marketing payments, payment terms, and other contractual conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A supermarket may purchase a product at a lower price than an independent shop because it buys larger quantities or benefits from more favourable payment terms. However, where a market is characterised by high barriers to entry, exclusionary agreements, or abuse of market power, price differences may also reflect competition problems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These two possibilities must be distinguished through data, rather than through shelf-price comparisons alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4.4. VAT and differences between countries<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In <a href=\"https:\/\/www.tatime.gov.al\/c\/4\/96\/110\/tatimi-mbi-vleren-e-shtuar\">Albania<\/a>, the standard VAT rate is <a href=\"https:\/\/www.tatime.gov.al\/c\/4\/96\/110\/tatimi-mbi-vleren-e-shtuar\">20%<\/a>. In <a href=\"https:\/\/europa.eu\/youreurope\/business\/finance-and-tax\/vat\/vat-rules-rates\/index_en.htm\">Italy<\/a>, the standard rate is 22%, alongside reduced rates for certain categories of goods, including food products that meet the relevant legal requirements. The applicable rate must be verified according to the classification of each product.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tax differences may affect final prices, but they do not, on their own, explain price levels. Even when tax rates are identical, prices may differ because of supply costs, productivity, contractual conditions, and market structure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Likewise, a reduction in a tax rate does not guarantee that the entire reduction will be passed on to consumers. Any proposal to change VAT on essential products should therefore be accompanied by an assessment of its budgetary impact, the distribution of benefits among households, and the extent to which the tax change is reflected in final prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4.5. Domestic Production and Competition<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ability of domestic producers and processors to supply the market with stable quantities, appropriate quality, and competitive prices can expand sourcing alternatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When domestic supply is limited or unstable, the market becomes more exposed to international prices, exchange-rate movements, and import conditions. However, domestic production does not automatically guarantee lower prices: the outcome depends on productivity, input costs, processing, distribution, and competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Policies supporting production should be assessed according to their ability to improve productivity and supply security, not solely by increases in production volumes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Can the Platform give Supermarkets an advantage?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Publishing prices may change how consumers search for and select products. If a household identifies an attractive price at a particular supermarket, it may shift some of its purchases towards that operator.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a potential mechanism of price-based competition. However, the impact on small shops cannot be determined solely from the fact that they are not included in the platform\u2019s initial phase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To measure the effect, the following should be assessed:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The share of sales shifting towards participating operators;<\/li>\n\n\n\n<li>Price changes at participating supermarkets and other retailers;<\/li>\n\n\n\n<li>Changes in customer numbers and sales, where data are available;<\/li>\n\n\n\n<li>The representativeness of sales outlets by city, size, and retail channel;<\/li>\n\n\n\n<li>Whether consumers can purchase the entire basket, rather than only the item with the lowest price.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Without these data, it is not possible to conclude that the platform has already favoured supermarkets or harmed small shops. The reasonable conclusion is that a potential effect exists and should be monitored.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Including smaller operators through simple reporting procedures and consistent verification criteria would improve market representativeness and reduce the risk that public information reflects only part of the available supply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">How should the impact of the Mirror of Prices be measured?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Evaluating a public policy requires a method that distinguishes changes caused by the intervention from changes that would have occurred even in its absence.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A simple comparison of prices before and after 12 October is insufficient. Prices may change because of seasonality, international costs, exchange rates, promotions, or shifts in demand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason, a weekly price panel and a comparison group are recommended.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">6.1. Indicators to be measured<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The first indicator is the actual price of the product.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For each product, the data should record its price, unit of measurement, brand, quantity, sales outlet, date, promotional status, and availability. Prices should be standardised, for example in lek per kilogram or litre, without mixing products of different quality or composition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The second indicator is the basket index.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A fixed basket should be constructed using weights determined in advance, based on quantities consumed or a documented household consumption structure. The index should retain the same composition throughout the assessment period so that changes are not driven by product substitution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a basket containing <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>n<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">n<\/annotation><\/semantics><\/math> products, the cost in week <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>t<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">t<\/annotation><\/semantics><\/math> can be calculated as follows:<math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\" display=\"block\"><semantics><mrow><msub><mi>C<\/mi><mi>t<\/mi><\/msub><mo>=<\/mo><munderover><mo>\u2211<\/mo><mrow><mi>i<\/mi><mo>=<\/mo><mn>1<\/mn><\/mrow><mi>n<\/mi><\/munderover><msub><mi>q<\/mi><mi>i<\/mi><\/msub><mo>\u22c5<\/mo><msub><mi>p<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">C_t=\\sum_{i=1}^{n}q_i\\cdot p_{it}<\/annotation><\/semantics><\/math><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>C<\/mi><mi>t<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">C_t<\/annotation><\/semantics><\/math> is the total cost of the basket in period <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>t<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">t<\/annotation><\/semantics><\/math>;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>n<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">n<\/annotation><\/semantics><\/math> is the number of products included in the basket;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>q<\/mi><mi>i<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">q_i<\/annotation><\/semantics><\/math> is the fixed quantity of product <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>i<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">i<\/annotation><\/semantics><\/math> in the basket;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>p<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">p_{it}<\/annotation><\/semantics><\/math> is the unit price of product <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>i<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">i<\/annotation><\/semantics><\/math> in period <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>t<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">t<\/annotation><\/semantics><\/math>;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mo>\u2211<\/mo><\/mrow><annotation encoding=\"application\/x-tex\">\\sum<\/annotation><\/semantics><\/math> denotes the sum of the costs of all products in the basket.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To measure the percentage change in basket cost relative to the base period, the following formula is used:<math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\" display=\"block\"><semantics><mrow><mi mathvariant=\"normal\">\u0394<\/mi><msub><mi>C<\/mi><mi>t<\/mi><\/msub><mo stretchy=\"false\">(<\/mo><mi mathvariant=\"normal\">%<\/mi><mo stretchy=\"false\">)<\/mo><mo>=<\/mo><mrow><mo fence=\"true\">(<\/mo><mfrac><msub><mi>C<\/mi><mi>t<\/mi><\/msub><msub><mi>C<\/mi><mn>0<\/mn><\/msub><\/mfrac><mo>\u2212<\/mo><mn>1<\/mn><mo fence=\"true\">)<\/mo><\/mrow><mo>\u00d7<\/mo><mn>100<\/mn><\/mrow><annotation encoding=\"application\/x-tex\">\\Delta C_t(\\%)=\\left(\\frac{C_t}{C_0}-1\\right)\\times100<\/annotation><\/semantics><\/math><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>C<\/mi><mn>0<\/mn><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">C_0<\/annotation><\/semantics><\/math> is the cost of the basket in the base period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This method is suitable for measuring changes in the cost of a standardised product basket when assessing the impact of the Price Observatory. For comparisons to be valid, products must have identical specifications, units of measurement, and quality, while the quantities <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>q<\/mi><mi>i<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">q_i<\/annotation><\/semantics><\/math> must remain unchanged.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The third indicator is price consistency.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Random checks should be conducted in stores to compare published prices with the actual prices displayed on shelves and charged at checkout. The results should be reported as the percentage of observations in which prices match, broken down by operator and product category.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The fourth indicator is competition.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where data are available, the assessment should measure price differences between operators, the dispersion of prices, product availability, and market shares. To assess whether customers are shifting between retailers, aggregated sales or footfall data are needed, rather than published prices alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">6.2. Assessing the causal effect<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The recommended method is <strong>Difference-in-Differences (DiD)<\/strong>, applied to a weekly panel of products and sales outlets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, a baseline period of at least 8\u201312 weeks before the platform\u2019s launch should be established, if historical data are available. Monitoring should then continue throughout the implementation of the \u201cKURSE\u201d initiative and, if possible, after it ends.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The treatment group consists of products and sales outlets exposed to the platform\u2019s mechanism. The comparison group should comprise similar products or sales outlets that were not exposed in the same way, selected according to product characteristics, category, city, and price trends before the intervention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A basic model is:<math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\" display=\"block\"><semantics><mrow><msub><mi>Y<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><mo>=<\/mo><msub><mi>\u03b1<\/mi><mi>i<\/mi><\/msub><mo>+<\/mo><msub><mi>\u03bb<\/mi><mi>t<\/mi><\/msub><mo>+<\/mo><mi>\u03b2<\/mi><mo stretchy=\"false\">(<\/mo><msub><mi>T<\/mi><mi>i<\/mi><\/msub><mo>\u00d7<\/mo><mi>P<\/mi><mi>o<\/mi><mi>s<\/mi><msub><mi>t<\/mi><mi>t<\/mi><\/msub><mo stretchy=\"false\">)<\/mo><mo>+<\/mo><msup><mi>\u03b3<\/mi><mo mathvariant=\"normal\" lspace=\"0em\" rspace=\"0em\">\u2032<\/mo><\/msup><msub><mi>X<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><mo>+<\/mo><msub><mi>\u03b5<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">Y_{it}=\\alpha_i+\\lambda_t+\\beta(T_i\\times Post_t)+\\gamma^{\\prime}X_{it}+\\varepsilon_{it}<\/annotation><\/semantics><\/math><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>Y<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">Y_{it}<\/annotation><\/semantics><\/math> is the price or cost indicator for observation unit <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>i<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">i<\/annotation><\/semantics><\/math> in period <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>t<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">t<\/annotation><\/semantics><\/math>;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>\u03b1<\/mi><mi>i<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">\\alpha_i<\/annotation><\/semantics><\/math> represents unit fixed effects, controlling for characteristics that do not change over time;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>\u03bb<\/mi><mi>t<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">\\lambda_t<\/annotation><\/semantics><\/math> represents time fixed effects, controlling for shocks common to the observed units;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>T<\/mi><mi>i<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">T_i<\/annotation><\/semantics><\/math> is an indicator variable equal to 1 for the group exposed to the intervention and 0 for the control group;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>P<\/mi><mi>o<\/mi><mi>s<\/mi><msub><mi>t<\/mi><mi>t<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">Post_t<\/annotation><\/semantics><\/math> is an indicator variable equal to 1 after the intervention and 0 before it;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>T<\/mi><mi>i<\/mi><\/msub><mo>\u00d7<\/mo><mi>P<\/mi><mi>o<\/mi><mi>s<\/mi><msub><mi>t<\/mi><mi>t<\/mi><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">T_i\\times Post_t<\/annotation><\/semantics><\/math> is the interaction identifying the exposed group after the intervention begins;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>X<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">X_{it}<\/annotation><\/semantics><\/math> is a vector of other measurable factors that vary over time, such as promotions or supply costs;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msup><mi>\u03b3<\/mi><mo mathvariant=\"normal\" lspace=\"0em\" rspace=\"0em\">\u2032<\/mo><\/msup><\/mrow><annotation encoding=\"application\/x-tex\">\\gamma^{\\prime}<\/annotation><\/semantics><\/math> is the vector of coefficients for the control factors;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>\u03b2<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">\\beta<\/annotation><\/semantics><\/math> is the coefficient estimating the additional effect associated with the intervention, provided the conditions for causal identification are met;<\/li>\n\n\n\n<li><math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><msub><mi>\u03b5<\/mi><mrow><mi>i<\/mi><mi>t<\/mi><\/mrow><\/msub><\/mrow><annotation encoding=\"application\/x-tex\">\\varepsilon_{it}<\/annotation><\/semantics><\/math> is the error term.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If <math xmlns=\"http:\/\/www.w3.org\/1998\/Math\/MathML\"><semantics><mrow><mi>\u03b2<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">\\beta<\/annotation><\/semantics><\/math> is negative and statistically distinguishable from zero, this would indicate that prices in the treatment group experienced a larger relative decrease, or a smaller increase, than prices in the control group after the intervention. However, this result can be interpreted as a causal effect only if the model\u2019s methodological assumptions are satisfied, particularly the existence of parallel trends before the intervention and the absence of other factors that affect the treatment group differently.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This limitation is particularly important in Albania because the \u201cKURSE\u201d initiative and the Price Observatory were launched during the same period. If both interventions cover the same products and sales outlets, their individual effects cannot automatically be identified separately. The initial assessment should therefore aim to measure the combined effect of the intervention package. Identifying the specific contribution of the Price Observatory requires additional variation in exposure or an alternative comparative design that allows the effects to be separated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To ensure the reliability of the results, the assessment should include alternative model specifications, different baseline periods, and robustness tests. If the data or identification conditions are insufficient to support causal conclusions, the report should present the results as observed changes or statistical associations, without interpreting them as proven effects of the intervention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">6.3. How should the results be published?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The evaluation report should be published using a standardised format:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Area<\/th><th>Reporting indicator<\/th><\/tr><\/thead><tbody><tr><td>Prices<\/td><td>Mean and median changes in comparable prices<\/td><\/tr><tr><td>Basket<\/td><td>Change in the cost of the fixed basket<\/td><\/tr><tr><td>Accuracy<\/td><td>Percentage of verified prices matching published information<\/td><\/tr><tr><td>Availability<\/td><td>Percentage of checks in which the product is actually available<\/td><\/tr><tr><td>Competition<\/td><td>Changes in price differences and market indicators<\/td><\/tr><tr><td>Policy effect<\/td><td>Statistical estimate, confidence interval, and limitations<\/td><\/tr><tr><td>Coverage<\/td><td>Coverage of retail chains, independent shops, and cities<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This reporting framework would turn the platform from a tool for publishing information into an instrument for evaluating economic policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">7. What should the Government do?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Public intervention should aim to create a market in which consumers receive reliable information, operators compete under fair conditions, and outcomes can be measured.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the initial period, priority should be given to publishing the methodology, verifying price accuracy, reconciling the data relating to the \u201cKURSE\u201d initiative, and gradually expanding market coverage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Subsequently, the supply chain should be assessed in categories where persistent price differences are observed. This assessment should rely on comparable data concerning purchase prices, distribution costs, rebates, margins, and final prices, while respecting commercial confidentiality and competition rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Any tax intervention, including a possible reduction in VAT on selected products, should be accompanied by an analysis of its budgetary cost and a method for measuring how much of the benefit is passed on to consumers. Such a measure should not be proposed solely on the basis of nominal price differences with another country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, competition enforcement should focus on market behaviour and conditions that may restrict competition, rather than assuming that a high price or a high margin automatically constitutes a violation. In every case, a measure should have a clearly defined objective, measurable indicators, and an evaluation timeframe. Only in this way can an initiative that increases visibility be distinguished from a policy that produces verifiable economic results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The success of the Price Observatory should not be measured by the number of products published, but by the quality of the information, changes in the actual cost of the basket, and its verifiable impact on competition.<\/strong> Transparency is an important prerequisite, but the results will depend on how the information is used, how the rules are enforced, and how the effects are measured.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 12 October 2026, Albania launched the Price Observatory, a platform designed to provide consumers with comparable information on the prices of essential products. According to the methodology published on [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":27284,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[9756],"tags":[21103,21102,16355,21101,16660,21099,21100,21098],"class_list":["post-27283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-consumer-protection","tag-difference-in-differences-model","tag-economic-analysis","tag-impact-on-prices","tag-market-competition","tag-price-monitoring","tag-price-transparency","tag-public-policy-evaluation"],"featured_image_src":{"landsacpe":["https:\/\/altax.al\/wp-content\/uploads\/2026\/10\/pasqyra-e-cmimeve-1-1140x445.jpg",1140,445,true],"list":["https:\/\/altax.al\/wp-content\/uploads\/2026\/10\/pasqyra-e-cmimeve-1-463x348.jpg",463,348,true],"medium":["https:\/\/altax.al\/wp-content\/uploads\/2026\/10\/pasqyra-e-cmimeve-1-300x201.jpg",300,201,true],"full":["https:\/\/altax.al\/wp-content\/uploads\/2026\/10\/pasqyra-e-cmimeve-1.jpg",1168,784,false]},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mirror of prices:Transparency for consumers, but Is It enough to ensure genuine competition? - ALTAX<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/altax.al\/en\/mirror-of-pricestransparency-for-consumers-but-is-it-enough-to-ensure-genuine-competition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mirror of prices:Transparency for consumers, but Is It enough to ensure genuine competition? - ALTAX\" \/>\n<meta property=\"og:description\" content=\"On 12 October 2026, Albania launched the Price Observatory, a platform designed to provide consumers with comparable information on the prices of essential products. 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