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Time as a strategic variable: business hours in the gasoline market

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  • Agnes Kügler
  • Christoph Weiss

Abstract

A popular argument in policy discussions on the liberalization of business hours proceeds on the assumption that business hours are strategic complements: if some firms open longer hours, competitors will be forced to extend their opening hours too. We provide first empirical evidence on the impact of competition and the form of strategic interaction in business hours between firms by using detailed information on business hours as well as the location of retail gasoline stations in Austria. Our findings reject the presumption of business hours being strategic complements. Firms tend to have longer opening hours in a more competitive environment.

Suggested Citation

  • Agnes Kügler & Christoph Weiss, 2016. "Time as a strategic variable: business hours in the gasoline market," Applied Economics Letters, Taylor & Francis Journals, vol. 23(15), pages 1051-1056, October.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:15:p:1051-1056
    DOI: 10.1080/13504851.2015.1133888
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    Cited by:

    1. Joseph Kuehn, 2020. "Strategic Complementarities in Bank Branching Decisions," Journal of Industrial Economics, Wiley Blackwell, vol. 68(4), pages 640-692, December.
    2. Firgo, Matthias & Kügler, Agnes, 2018. "Cooperative pricing in spatially differentiated markets," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 51-67.
    3. 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.

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