Deregulation of Shopping Hours: The Impact on Corner Shops and Chain Stores∗

نویسنده

  • Tobias Wenzel
چکیده

This paper studies business hour decisions by retail chains and corner shops in a spatial retail market. We use a Salop-type model where retailers compete in prices and shopping hours. Assuming equally efficient firms, we find that the corner shop chooses no shorter business hours than a retail chain, but potentially longer ones. Additionally, we find that the firms have different stands towards deregulation of opening hours. For non-trivial deregulations, a corner shop may loose or gain, while the retail chain looses profits unambiguously. These results are overturned when the retail chain enjoys a sufficiently large efficiency advantage. Then, a retail chain may choose longer shopping hours and may gain by deregulation.

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تاریخ انتشار 2008