IDEAS home Printed from https://ideas.repec.org/a/kap/jincot/v19y2019i3d10.1007_s10842-019-00299-z.html
   My bibliography  Save this article

Business Hours, Store Quality, and Social Welfare

Author

Listed:
  • Mai Yamada

    (Showa Women’s University)

Abstract

This paper examines retail strategies related to business hours, store quality, and price. We consider a cost regime in which quality investments are more costly for extended business hours. The cost regime captures additional investment costs for customer and security service during late hours. This is a novel feature in the existing literature on retail competition in business hours and prices. We show that a retailer with shorter business hours chooses higher store quality and charges lower prices. We also find that the liberalization of business hours is desirable in view of social welfare because store quality and demand under liberalized business hours are greater than those under regulated business hours.

Suggested Citation

  • Mai Yamada, 2019. "Business Hours, Store Quality, and Social Welfare," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 465-478, September.
    • Handle: RePEc:kap:jincot:v:19:y:2019:i:3:d:10.1007_s10842-019-00299-z
    DOI: 10.1007/s10842-019-00299-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10842-019-00299-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10842-019-00299-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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 107-114, January.
    2. Oz Shy & Rune Stenbacka, 2008. "Price Competition, Business Hours and Shopping Time Flexibility," Economic Journal, Royal Economic Society, vol. 118(531), pages 1171-1195, August.
    3. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    4. Tobias Wenzel, 2011. "Deregulation of Shopping Hours: The Impact on Independent Retailers and Chain Stores," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 145-166, March.
    5. 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.
    6. Danchev, Svetoslav & Genakos, Christos, 2015. "Evaluating the impact of Sunday trading deregulation," LSE Research Online Documents on Economics 61156, London School of Economics and Political Science, LSE Library.
    7. 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.
    8. 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.
    9. Kay, J A & Morris, C N, 1987. "The Economic Efficiency of Sunday Trading Restrictions," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 113-129, December.
    10. Cancian, Maria & Bills, Angela & Bergstrom, Theodore, 1995. "Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 121-124, March.
    11. Karthik Reddy, 2012. "Price Effects Of Shopping Hours Regulation: Evidence From Germany," Economic Affairs, Wiley Blackwell, vol. 32(1), pages 48-54, February.
    12. 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 516-524, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samuel Haas & Daniel Herold & Jan T. Schäfer, 2020. "Shopping Hours and Entry - an Empirical Analysis of Aldi’s Opening Hours," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 139-156, March.
    2. Yamada, Mai, 2020. "The Regulation Level of Business Hours," MPRA Paper 101392, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yamada, Mai, 2014. "Opening Hours, Store Quality, and Social Welfare," MPRA Paper 84105, University Library of Munich, Germany, revised 01 Nov 2017.
    2. Yamada, Mai, 2014. "Opening Hours, Store Quality, and Social Welfare," MPRA Paper 84172, University Library of Munich, Germany, revised 24 Jan 2018.
    3. Yamada, Mai, 2014. "Opening Hours and Quality Choices," MPRA Paper 56066, University Library of Munich, Germany.
    4. repec:bla:germec:v:11:y:2010:i::p:511-526 is not listed on IDEAS
    5. Habte, Osmis, 2017. "Opening Hours Decision and Competition in the Motor Vehicle Inspection Market," Working Papers 2017:20, Lund University, Department of Economics.
    6. Oz Shy & Rune Stenbacka, 2008. "Price Competition, Business Hours and Shopping Time Flexibility," Economic Journal, Royal Economic Society, vol. 118(531), pages 1171-1195, August.
    7. 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.
    8. Tobias Wenzel, 2010. "Liberalization of Opening Hours with Free Entry," German Economic Review, Verein für Socialpolitik, vol. 11(4), pages 511-526, November.
    9. Elbert Dijkgraaf & Raymond Gradus, 2007. "Explaining Sunday Shop Policies," De Economist, Springer, vol. 155(2), pages 207-219, June.
    10. Yamada, Mai, 2020. "The Regulation Level of Business Hours," MPRA Paper 101392, University Library of Munich, Germany.
    11. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    12. 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.
    13. Svetoslav Danchev & Christos Genakos, 2015. "Evaluating the Impact of Sunday Trading Deregulation," CEP Discussion Papers dp1336, Centre for Economic Performance, LSE.
    14. Miguel Flores, 2011. "24/7," Discussion Papers in Economics 11/51, Division of Economics, School of Business, University of Leicester.
    15. 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.
    16. Raymond Gradus, 1996. "The economic effects of extending shop opening hours," Journal of Economics, Springer, vol. 64(3), pages 247-263, October.
    17. Javier de la Ballina Ballina & Rodolfo Vázquez, 2015. "El papel de las bluelaws en los modelos de evolución de los for¬matos comerciales," Hacienda Pública Española / Review of Public Economics, IEF, vol. 213(2), pages 63-82, June.
    18. 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.
    19. Erhao Xie, 2018. "Inference in Games Without Nash Equilibrium: An Application to Restaurants, Competition in Opening Hours," Staff Working Papers 18-60, Bank of Canada.
    20. Wenzel, Tobias, 2007. "Liberalization of Opening Hours with Free Entry," Ruhr Economic Papers 13, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    21. Paul, Annemarie, 2015. "After work shopping? Employment effects of a deregulation of shop opening hours in the German retail sector," European Economic Review, Elsevier, vol. 80(C), pages 329-353.

    More about this item

    Keywords

    Business hours; Location; Multi-dimensional product differentiation; Duopoly;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jincot:v:19:y:2019:i:3:d:10.1007_s10842-019-00299-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.