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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

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.

Suggested Citation

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

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    Cited by:

    1. Senftleben-König, Charlotte, 2014. "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100539, Verein für Socialpolitik / German Economic Association.
    2. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    3. Habte, Osmis, 2017. "Opening Hours Decision and Competition in the Motor Vehicle Inspection Market," Working Papers 2017:20, Lund University, Department of Economics.
    4. Elbert Dijkgraaf & Raymond Gradus, 2007. "Explaining Sunday Shop Policies," De Economist, Springer, vol. 155(2), pages 207-219, June.
    5. 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.
    6. Michael C Burda & Philippe Weil, 2004. "Blue Laws," Working Papers hal-01065499, HAL.
    7. Charlotte Senftleben-König, 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.
    8. Svetoslav Danchev & Christos Genakos, 2015. "Evaluating the Impact of Sunday Trading Deregulation," CEP Discussion Papers dp1336, Centre for Economic Performance, LSE.
    9. 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.
    10. Charlotte Senftleben-König, 2014. "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," Working Papers 2014009, Berlin Doctoral Program in Economics and Management Science (BDPEMS).
    11. Michael Burda, 2000. "Product Market Regulation and Labor Market Outcomes: How can Deregulation Create Jobs?," CESifo Working Paper Series 230, CESifo Group Munich.
    12. Yamada, Mai, 2014. "Opening Hours and Quality Choices," MPRA Paper 56066, University Library of Munich, Germany.
    13. 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.
    14. Raymond Gradus, 1996. "The economic effects of extending shop opening hours," Journal of Economics, Springer, vol. 64(3), pages 247-263, October.
    15. Yamada, Mai, 2014. "Opening Hours, Store Quality, and Social Welfare," MPRA Paper 84172, University Library of Munich, Germany, revised 24 Jan 2018.
    16. 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.
    17. Yamada, Mai, 2014. "Opening Hours, Store Quality, and Social Welfare," MPRA Paper 84105, University Library of Munich, Germany, revised 01 Nov 2017.
    18. 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.
    19. Miguel Flores, 2011. "24/7," Discussion Papers in Economics 11/51, Department of Economics, University of Leicester.
    20. repec:spo:wpecon:info:hdl:2441/8843 is not listed on IDEAS
    21. 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.
    22. 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.
    23. 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.

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