The information asymmetry versus the actors’ limited rationality. MAP value chain evidence and perspective in Albania


1Department of Forestry, Faculty of Forestry, Agricultural University of Tirana, Albania
2Department of Economics, Faculty of Economy, Mediterranean University of Albania, Albania

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After 1991, the Albanian transition from the centralized economy to the market economy changed also the management structure of the medicinal and aromatic plants (MAP) sector. Relying on the neoliberal theory, the growth of MAP performance sector may come through the privatization of processing and export activity. Thus, their management was given to private actors, but the management of their habitats remained under the state management. According on UN Comtrade data, in 2015, the exported quantity during the last twenty years remains at the same levels of the Communist period. Currently, the low performance is linked with the market efficiency. Neo-Keynesian theory emphasizes that markets are inefficient due to the lack of transparency. Economic agents have limited rationality because of the asymmetric information. The asymmetry of this information leads agents to the selection of unsatisfactory products such as the case study studied by Akerlof (1970) or Insurance Contracts published by Rothschild and Stiglitz [24]. Previous studies during the recent years in Albania show a lack of information about the potential of MAP in their habitats. This paper is based on the hypothesis of the limited rationality due to the information asymmetry affects also the actors of this sector. Being affected by the lack of information, their choices are driven toward less quality products. To verify this hypothesis, we are based on the official statistics, scientific and field studies. The first results show that the trend of needs satisfaction is linked with the cultivated plants.

Keywords: Medicinal and aromatic plants, performance, limited rationality, information asymmetry

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