Price Competition, Business Hours, and Shopping Time Flexibility

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Price Competition , Business Hours , and Shopping Time Flexibility ∗ Oz Shy

We analyze differentiated retail industries where shops engage in two-stage competition with respect to opening hours and prices. We explore the effects of consumers’ shopping time flexibility by comparing bi-directional consumers with forwardor backward-oriented consumers, who can either postpone or advance their shopping, but not both. We demonstrate that retailers with longer opening hours c...

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Price Competition and Business Hours ∗

We analyze differentiated retail industries where shops engage in two-stage competition with respect to opening hours and prices. We demonstrate that retailers with longer opening hours charge higher prices and that opening hour differentiation softens price competition in a way described by a convex function of the proportion of the time that one of the stores is the sole operator. We calculat...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2004

ISSN: 1556-5068

DOI: 10.2139/ssrn.645881