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Opening Hours and Consumer Behavior: Evidence from GPS Data and Deregulation

Author

Listed:
  • Donna, Javier
  • Hinnosaar, Marit
  • Hinnosaar, Toomas
  • Trindade, André

Abstract

On August 1, 2019, North Dakota repealed its Sunday closing law, which had required most non-grocery stores to close between midnight and noon on Sundays. Using this policy change and detailed GPS data on consumer movement, we study the impact of store opening hours on shopping behavior and welfare. We compare store visits before and after the repeal in North Dakota and neighboring states, using difference-in-differences and event study designs. The repeal led to a large increase in Sunday morning store visits in North Dakota. This change reflects a rise in overall shopping frequency, along with intertemporal substitution (mainly from Sunday afternoon), substitution across store types (from grocery stores), and cross-border shopping to Minnesota. We find that the welfare loss from the Sunday sales restriction for Walmart stores is equivalent to increasing the travel distance to Walmart by about 1.7 miles for each consumer.

Suggested Citation

  • Donna, Javier & Hinnosaar, Marit & Hinnosaar, Toomas & Trindade, André, 2025. "Opening Hours and Consumer Behavior: Evidence from GPS Data and Deregulation," CEPR Discussion Papers 20409, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20409
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    File URL: https://cepr.org/publications/DP20409
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    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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