IDEAS home Printed from https://ideas.repec.org/p/vig/wpaper/0608.html
   My bibliography  Save this paper

Shopping hours and bundling as an entry barrier

Author

Listed:
  • José María Chamorro Rivas

Abstract

This paper presents a simple model of regulated/deregulated shopping hours and bundling in markets where consumers have preference in shopping time. We show that, for a range of parameters, the market will change from a duopoly with an independent pricing regime when shopping hours are regulated, to a monopoly regime with bundling of products, when shopping hours are deregulated. For the rest range of parameters, market structure does not change after deregulation. Finally, deregulation tends to increase the range of parameters over which bundling is a profitable strategy. Thus, the message of this paper is that deregulation increases the strategic incentive to bundle as a mechanism to deter entry.

Suggested Citation

  • José María Chamorro Rivas, 2006. "Shopping hours and bundling as an entry barrier," Working Papers 0608, Universidade de Vigo, Departamento de Economía Aplicada.
  • Handle: RePEc:vig:wpaper:0608
    as

    Download full text from publisher

    File URL: http://webX06.webs.uvigo.es/sites/default/files/wp0608.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Carbajo, Jose & de Meza, David & Seidmann, Daniel J, 1990. "A Strategic Motivation for Commodity Bundling," Journal of Industrial Economics, Wiley Blackwell, vol. 38(3), pages 283-298, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Shopping hours; Bundling; Foreclosure.;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

    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:vig:wpaper:0608. 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: (Departamento de Economía Aplicada). General contact details of provider: http://edirc.repec.org/data/deviges.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.