Reference : Shopping hours and price competition
Scientific journals : Article
Business & economic sciences : Microeconomics
http://hdl.handle.net/10993/12270
Shopping hours and price competition
English
Inderst, Roman [> >]
Irmen, Andreas mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)]
2005
European Economic Review
49
5
1105-1124
Yes
International
[en] Opening Hours ; Regumation ; Multi-dimensional Product Differentiation
[en] This Paper develops an argument explaining why retail prices may rise in response to the deregulation of opening hours. We make this point in a model of imperfect duopolistic competition. In a deregulated market retailers view the choice of opening hours as a means to increase the degree of perceived product differentiation thus relaxing price competition. If the opportunity costs of the time spent on shopping are sufficiently high the equilibrium configuration has asymmetric shopping hours where one retailer stays open for longer than the other does. Both retailers charge higher prices than under regulation, and both are strictly better off.<P>(This abstract was borrowed from another version of this item.)
Researchers ; Professionals ; Students
http://hdl.handle.net/10993/12270
http://ideas.repec.org/a/eee/eecrev/v49y2005i5p1105-1124.html

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