Price Competition, Business Hours, and Shopping Time Flexibility

Shy, Oz; Stenbacka, Rune

doi:10.2139/ssrn.645881

Cited by 6 publications

(38 citation statements)

References 17 publications

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“…The model set‐up draws on Inderst and Irmen (2005) and Shy and Stenbacka (2008), but it extends their work to asymmetric firm types. Consider a spatially differentiated retail industry in the spirit of Salop (1979).…”

Section: Model Set‐upmentioning

confidence: 99%

“…If a store is closed at the preferred shopping time, consumers can either postpone or advance their shopping. According to the terminology of Shy and Stenbacka (2008), consumers are bidirectional. Consumers are assumed to be uniformly distributed on the “time circle” 3 .…”

Section: Model Set‐upmentioning

confidence: 99%

“…10 10 Shy and Stenbacka (2008) also show that the store with shorter shopping hours has a larger market share during day‐time compared to the situation with symmetric shopping hours. This is due to the lower price charged by this store. …”

mentioning

confidence: 90%

“…In a model with two symmetric firms, firms can use shopping time as an additional instrument to relax price competition by choosing asymmetric opening hours. Similarly, Shy and Stenbacka (2008) analyze a retail industry wherein competition takes place in opening hours and prices. The focus of their study is on the impact of different shopping time flexibility assumptions.…”

Section: Introductionmentioning

confidence: 99%

“…3 3 Shy and Stenbacka (2008) also discuss different densities of day‐time and night‐time consumers. They show that this does not affect the main results. …”

mentioning

confidence: 99%

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Deregulation of Shopping Hours: The Impact on Independent Retailers and Chain Stores

Wenzel¹

2011

Scandinavian J Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. licence. www.econstor.eu The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily reflect those of the editor. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated Deregulation of Shopping AbstractThis paper studies shopping hour decisions by retail chains and independent competitors. We use a Salop-type model where retailers compete in prices and shopping hours. Our results depend significantly on efficiency differences between retail chain and independent retailer. If the efficiency difference is small, the independent retailer may choose longer shopping hours than the retail chain and may gain from deregulation at the expense of the retail chain. The opposite result emerges when the efficiency difference is large. Then, the retail chain may benefit whereas the independent retailer loses from deregulation.Keywords: Business hours, retailing, deregulation JEL-Classification: L13, L51, L81 * I thank three anonymous referees for comments that substantially improved the paper as well as Wolfgang Leininger, Justus Haucap, Vivien Procher, participants of the EEA 2008 in Milan, of the Annual Meeting of the German Economic Association 2008 in Graz and seminar participants in Dortmund and Dresden for helpful comments. Financial support by the RGS is gratefully acknowledged. I IntroductionIn many European countries, shopping hours are regulated by the state. However, the degree of regulation varies to a large extent. For instance, in the UK, Sweden, and recently also in Germany, shopping hours are much more deregulated than in France or Norway. Even though the trend goes towards less regulation, the issue is still discussed controversially.There is a particular controversy about how deregulation impacts on competition between large retail chains and smaller, independent competitors. Smaller retailers fear that they may be harmed by a deregulation of shopping hours. The reason...

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Section: Model Set‐upmentioning

confidence: 99%

Section: Model Set‐upmentioning

confidence: 99%

mentioning

confidence: 90%

Section: Introductionmentioning

confidence: 99%

“…3 3 Shy and Stenbacka (2008) also discuss different densities of day‐time and night‐time consumers. They show that this does not affect the main results. …”

mentioning

confidence: 99%

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Deregulation of Shopping Hours: The Impact on Independent Retailers and Chain Stores

Wenzel¹

2011

Scandinavian J Economics

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Effects of the Sunday Shopping Restriction in Korea

Choi

Jeong

2015

Contemporary Economic Policy

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We examine the effectiveness of Korea's Sunday superstore shopping regulation, whose purpose is to protect small-and medium-sized retailers as well as traditional markets. Applying a two-way random-effects regression model to the daily sales data of four megastores and four super supermarkets, we find the net sales decrease of superstores is on average 5.61% of daily sales after taking into account sales increases due to consumers' switching to weekdays. Only about 17%-19% of the reduced superstore sales are transferred to traditional markets. Based on these estimates, the compensating variation per year is predicted to be 2.4-2.5 trillion Korean won (around US $2.1-2.2 billion). (JEL L51, L88) * We are indebted to valuable comments from H

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Liberalization of Opening Hours with Free Entry

Wenzel

2010

German Economic Review

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Price Competition, Business Hours, and Shopping Time Flexibility

Cited by 6 publications

References 17 publications

Deregulation of Shopping Hours: The Impact on Independent Retailers and Chain Stores

Deregulation of Shopping Hours: The Impact on Independent Retailers and Chain Stores

Effects of the Sunday Shopping Restriction in Korea

Liberalization of Opening Hours with Free Entry

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