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Shopping Hours and Price Levels in the Retailing Industry: A Theoretical and Empirical Analysis

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  • Tanguay, Georges
  • Vallee, Luc
  • Lanoie, Paul
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    Abstract

    The authors explore the effect of extended shopping hours on the demand faced by small and large stores and on their prices. Their theoretical model predicts that prices at large stores will increase after opening hours are deregulated. The authors then test this prediction using a set of Quebec data collected before and after the deregulation of opening hours in July 1990. The results support their view that prices have increased at large stores since deregulation and that consumers pay for greater shopping flexibility. Copyright 1995 by Oxford University Press.

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    Bibliographic Info

    Article provided by Western Economic Association International in its journal Economic Inquiry.

    Volume (Year): 33 (1995)
    Issue (Month): 3 (July)
    Pages: 516-24

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    Handle: RePEc:oup:ecinqu:v:33:y:1995:i:3:p:516-24

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    Cited by:
    1. Miguel Flores, 2011. "24/7," Discussion Papers in Economics 11/51, Department of Economics, University of Leicester.
    2. Yamada, Mai, 2014. "Opening Hours and Quality Choices," MPRA Paper 56066, University Library of Munich, Germany.
    3. J. Stephen Ferris, 2009. "Quantifying Non-tariff Trading Barriers: What Difference Did the U.S. Security Precautions Following 9/11 Make to Canadian Cross Border Shopping? -revised version: Quantifying Non-Tariff Trade Barrier," Carleton Economic Papers 09-04, Carleton University, Department of Economics, revised Dec 2010.
    4. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    5. Raymond Gradus, 1996. "The economic effects of extending shop opening hours," Journal of Economics, Springer, vol. 64(3), pages 247-263, October.
    6. Georges Tanguay & Gary Hunt & Nicolas Marceau, 2005. "Food Prices and the Timing of Welfare Payments: A Canadian Study," Canadian Public Policy, University of Toronto Press, vol. 31(2), pages 145-160, June.
    7. Kosfeld, Michael, 2002. "Why shops close again: An evolutionary perspective on the deregulation of shopping hours," European Economic Review, Elsevier, vol. 46(1), pages 51-72, January.
    8. Michael Burda, 2000. "Product Market Regulation and Labor Market Outcomes: How can Deregulation Create Jobs?," CESifo Working Paper Series 230, CESifo Group Munich.
    9. Charlotte Senftleben-K├Ânig, 2014. "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," SFB 649 Discussion Papers SFB649DP2014-013, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    10. Shy, Oz & Stenbacka, Rune, 2006. "Service hours with asymmetric distributions of ideal service time," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 763-771, July.
    11. repec:spo:wpecon:info:hdl:2441/8843 is not listed on IDEAS
    12. Elbert Dijkgraaf & Raymond Gradus, 2004. "Explaining Sunday shop policies," Public Economics 0409003, EconWPA.
    13. Grunhagen, Marko & Grove, Stephen J. & Gentry, James W., 2000. "The Dynamics of Store Hour Changes and Consumption Behavior: Results of a Longitudinal Study of Consumer Attitudes toward Saturday Shopping in Germany," Working Papers 112959, Clemson University, Center for International Trade.
    14. E. Dijkgraaf & R.H.J.M. Gradus, 2006. "Deregulating Sunday Shop Policies," Tinbergen Institute Discussion Papers 06-003/3, Tinbergen Institute.
    15. Jacobsen, Joyce P. & Kooreman, Peter, 2005. "Timing constraints and the allocation of time: The effects of changing shopping hours regulations in The Netherlands," European Economic Review, Elsevier, vol. 49(1), pages 9-27, January.
    16. Michael C Burda & Philippe Weil, 2004. "Blue Laws," Sciences Po publications info:hdl:2441/8843, Sciences Po.
    17. E. Dijkgraaf & R.H.J.M. Gradus, 2006. "Deregulating Sunday Shop Policies," Tinbergen Institute Discussion Papers 06-003/3, Tinbergen Institute.
    18. Skuterud, Mikal, 2005. "The impact of Sunday shopping on employment and hours of work in the retail industry: Evidence from Canada," European Economic Review, Elsevier, vol. 49(8), pages 1953-1978, November.
    19. Vitor Miguel Ribeiro, 2014. "Establishing a link between behavior ecconomics and two-sided markets," FEP Working Papers 538, Universidade do Porto, Faculdade de Economia do Porto.
    20. Stephane Caprice & Vanessa von Schlippenbach, 2008. "Competition policy in a concentrated and globalized retail industry," Working Papers 23775, Institut National de la Recherche Agronomique, France.

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