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Liberalization of Opening Hours with Free Entry

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  • Tobias Wenzel

Abstract

. This paper studies competition in prices and opening hours in a model with free entry. It is shown that under free competition market failures arise: Entry is excessive and opening hours are under‐provided. The larger the demand elasticity, the larger market failures are going to be. Restrictions on opening hours aggravate this failure. We analyze the impact of a liberalization of opening hours. The model predicts that prices will remain constant in the short run but increase in the long run. Concentration in the retail sector will rise. Additionally, employment in the retail sector increases.

Suggested Citation

  • Tobias Wenzel, 2010. "Liberalization of Opening Hours with Free Entry," German Economic Review, Verein für Socialpolitik, vol. 11(4), pages 511-526, November.
    • Handle: RePEc:bla:germec:v:11:y:2010:i:4:p:511-526
    DOI: 10.1111/j.1468-0475.2009.00498.x
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    References listed on IDEAS

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    Cited by:

    1. Niklas Potrafke & Felix Roesel, 2020. "Opening hours of polling stations and voter turnout: Evidence from a natural experiment," The Review of International Organizations, Springer, vol. 15(1), pages 133-163, January.
    2. 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.
    3. Mario Bossler & Michael Oberfichtner, 2017. "The Employment Effect Of Deregulating Shopping Hours: Evidence From German Food Retailing," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 757-777, April.
    4. Bossler, Mario & Oberfichtner, Michael, 2014. "The employment effect of deregulating shopping hours: Evidence from German retailing," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100506, Verein für Socialpolitik / German Economic Association.
    5. Yamada, Mai, 2020. "The Regulation Level of Business Hours," MPRA Paper 101392, University Library of Munich, Germany.
    6. Andre Jungmittag, 2018. "The Direct and Indirect Effects of Product Market Regulations in the Retail Trade Sector," JRC Research Reports JRC112222, Joint Research Centre.

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