Why shops close again: An evolutionary perspective on the deregulation of shopping hours
This paper introduces a new perspective on the deregulation of shopping hours based on ideas from evolutionary game theory. We study a retail economy where shopping hours have been deregulated recently. It is argued that first, the deregulation leads to a coordination problem between store owners and customer, and second, the `solution' to this problem depends on the specific cost structure of stores and the preferences of customers. In particular, it may happen that, even if it is profitable for both to keep stores open at night, they do not succeed in coordinating on this equilibrium. The analysis explains the observation in Germany, where shopping hours have been deregulated recently, that store owners tend to go back to the former shopping hours again. Moreover, it emphasizes the important role of advertisement campaigns as a signalling device.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Eric Van Damme & Jorgen W Weibull, 1999.
"Evolution with Mutations Driven by Control Costs,"
Levine's Working Paper Archive
2113, David K. Levine.
- Weibull, Jörgen W. & van Damme, Eric, 1998. "Evolution with Mutations Driven by Control Costs," Working Paper Series 501, Research Institute of Industrial Economics.
- van Damme, E.E.C. & Weibull, J., 1998. "Evolution with Mutations Driven by Control Costs," Discussion Paper 1998-94, Tilburg University, Center for Economic Research.
- Ellison, Glenn, 1993.
"Learning, Local Interaction, and Coordination,"
Econometric Society, vol. 61(5), pages 1047-71, September.
- Kim, Y.G. & Sobel, J., 1993.
"An Evolutionary Approach to Pre-Play Communication,"
93-02, University of Iowa, Department of Economics.
- Kim, Yong-Gwan & Sobel, Joel, 1995. "An Evolutionary Approach to Pre-play Communication," Econometrica, Econometric Society, vol. 63(5), pages 1181-93, September.
- Thum, Marcel & Weichenrieder, Alfons, 1997. "'Dinkies' and Housewives: The Regulation of Shopping Hours," Kyklos, Wiley Blackwell, vol. 50(4), pages 539-59.
- Gerhard CLEMENZ, 1990. "Competition Via Shopping Hours: A Case For Regulation?," Vienna Economics Papers vie9005, University of Vienna, Department of Economics.
- Lawrence Blume, 1993.
"The Statistical Mechanics of Best-Response Strategy Revision,"
Game Theory and Information
9307001, EconWPA, revised 26 Jan 1994.
- Blume Lawrence E., 1995. "The Statistical Mechanics of Best-Response Strategy Revision," Games and Economic Behavior, Elsevier, vol. 11(2), pages 111-145, November.
- Nooteboom, B., 1982.
"A new theory of retailing costs,"
Other publications TiSEM
5c1be7a9-2d77-4bfb-9e64-4, Tilburg University, School of Economics and Management.
- Clemenz, Gerhard, 1990. "Non-sequential consumer search and the consequences of a deregulation of trading hours," European Economic Review, Elsevier, vol. 34(7), pages 1323-1337, November.
- Ferris, J Stephen, 1990.
"Time, Space, and Shopping: The Regulation of Shopping Hours,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 6(1), pages 171-87, Spring.
- Stephen J. Ferris, 1988. "Time, Space And Shopping: The Regulation Of Shopping Hours," Carleton Industrial Organization Research Unit (CIORU) 88-06, Carleton University, Department of Economics.
- Michael Kosfeld, 2002.
"Stochastic strategy adjustment in coordination games,"
Springer, vol. 20(2), pages 321-339.
- Kosfeld, M., 1999. "Stochastic Strategy Adjustment in Coordination Games," Research Memorandum 775, Tilburg University, School of Economics and Management.
- Tanguay, Georges & Vallee, Luc & Lanoie, Paul, 1995. "Shopping Hours and Price Levels in the Retailing Industry: A Theoretical and Empirical Analysis," Economic Inquiry, Western Economic Association International, vol. 33(3), pages 516-24, July.
- Blume Lawrence E., 1993.
"The Statistical Mechanics of Strategic Interaction,"
Games and Economic Behavior,
Elsevier, vol. 5(3), pages 387-424, July.
- L. Blume, 2010. "The Statistical Mechanics of Strategic Interaction," Levine's Working Paper Archive 488, David K. Levine.
- de Meza, David, 1984. "The Fourth Commandment: Is it Pareto Efficient?," Economic Journal, Royal Economic Society, vol. 94(374), pages 379-83, June.
- Kandori, M. & Mailath, G.J., 1991.
"Learning, Mutation, And Long Run Equilibria In Games,"
71, Princeton, Woodrow Wilson School - John M. Olin Program.
- Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
- M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
- Kay, J A & Morris, C N, 1987. "The Economic Efficiency of Sunday Trading Restrictions," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 113-29, December.
- John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, June.
- Matsui, Akihiko, 1991. "Cheap-talk and cooperation in a society," Journal of Economic Theory, Elsevier, vol. 54(2), pages 245-258, August.
- Gordon Tullock, 1975. "The Transitional Gains Trap," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 671-678, Autumn.
- Morrison, Steven A & Newman, Robert J, 1983. "Hours of Operation Restrictions and Competition among Retail Firms," Economic Inquiry, Western Economic Association International, vol. 21(1), pages 107-14, January.
- John Moorhouse, 1984. "Is Tullock correct about Sunday closing laws?," Public Choice, Springer, vol. 42(2), pages 197-203, January.
- Karin Halk & Uwe C. Täger, 1998. "Verbraucher begrüßen neue Ladenöffnungszeiten," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 51(23), pages 03-11, October.
When requesting a correction, please mention this item's handle: RePEc:eee:eecrev:v:46:y:2002:i:1:p:51-72. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.