IDEAS home Printed from https://ideas.repec.org/p/osk/wpaper/1511.html
   My bibliography  Save this paper

Socially Optimal Service hours with Special Offers

Author

Listed:
  • Hyewon Kim

    (Graduate School of Economics, Osaka University)

  • Hiroaki Sandoh

    (Graduate School of Economics, Osaka University)

Abstract

It is very important for service industries to decentralize consumers at peak time, and thereby to increase sales not at peak time. This study discusses an optimal number of business hours for a service industry when the service provider offers a price discount immediately after the opening time and just before the closing time. For a specific ideal service time distri- bution of consumers, the optimal opening and closing time are explored. Clarified are the conditions under which an optimal number of business hours exists to maximize the social welfare. Numerical examples are also presented to illustrate the theoretical underpinnings of the proposed model.

Suggested Citation

  • Hyewon Kim & Hiroaki Sandoh, 2015. "Socially Optimal Service hours with Special Offers," Discussion Papers in Economics and Business 15-11, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1511
    as

    Download full text from publisher

    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1511.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    2. Ferris, J Stephen, 1990. "Time, Space, and Shopping: The Regulation of Shopping Hours," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 6(1), pages 171-187, Spring.
    3. 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.
    4. de Meza, David, 1984. "The Fourth Commandment: Is it Pareto Efficient?," Economic Journal, Royal Economic Society, vol. 94(374), pages 379-383, June.
    5. Gerhard CLEMENZ, 1990. "Competition Via Shopping Hours: A Case For Regulation?," Vienna Economics Papers vie9005, University of Vienna, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:bla:germec:v:11:y:2010:i::p:511-526 is not listed on IDEAS
    2. 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.
    3. Tobias Wenzel, 2010. "Liberalization of Opening Hours with Free Entry," German Economic Review, Verein für Socialpolitik, vol. 11(4), pages 511-526, November.
    4. 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.
    5. Habte, Osmis, 2017. "Opening Hours Decision and Competition in the Motor Vehicle Inspection Market," Working Papers 2017:20, Lund University, Department of Economics.
    6. Yamada, Mai, 2014. "Opening Hours and Quality Choices," MPRA Paper 56066, University Library of Munich, Germany.
    7. Oz Shy & Rune Stenbacka, 2008. "Price Competition, Business Hours and Shopping Time Flexibility," Economic Journal, Royal Economic Society, vol. 118(531), pages 1171-1195, August.
    8. Yamada, Mai, 2014. "Opening Hours, Store Quality, and Social Welfare," MPRA Paper 84172, University Library of Munich, Germany, revised 24 Jan 2018.
    9. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    10. Yamada, Mai, 2014. "Opening Hours, Store Quality, and Social Welfare," MPRA Paper 84105, University Library of Munich, Germany, revised 01 Nov 2017.
    11. Samuel Haas & Daniel Herold & Jan T. Schäfer, 2020. "Shopping Hours and Entry - an Empirical Analysis of Aldi’s Opening Hours," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 139-156, March.
    12. Samuel de Haas & Daniel Herold & Jan T. Schaefer, 2017. "Shopping hours and entry - An empirical analysis of Aldi's opening hours," MAGKS Papers on Economics 201751, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. 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.
    14. Mai Yamada, 2019. "Business Hours, Store Quality, and Social Welfare," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 465-478, September.
    15. Elbert Dijkgraaf & Raymond Gradus, 2007. "Explaining Sunday Shop Policies," De Economist, Springer, vol. 155(2), pages 207-219, June.
    16. Svetoslav Danchev & Christos Genakos, 2015. "Evaluating the Impact of Sunday Trading Deregulation," CEP Discussion Papers dp1336, Centre for Economic Performance, LSE.
    17. Javier de la Ballina Ballina & Rodolfo Vázquez, 2015. "El papel de las bluelaws en los modelos de evolución de los for¬matos comerciales," Hacienda Pública Española / Review of Public Economics, IEF, vol. 213(2), pages 63-82, June.
    18. Alexei Alexandrov, 2008. "Fat Products," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(1), pages 67-95, March.
      • Alexei Alexandrov, 2006. "Fat Products," Discussion Papers 1435, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    19. Tobias Wenzel, 2007. "Liberalization of Opening Hours with Free Entry," Ruhr Economic Papers 0013, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    20. repec:zbw:rwirep:0013 is not listed on IDEAS
    21. Raskovich, Alexander, 2007. "Ordered bargaining," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1126-1143, October.
    22. Yamada, Mai, 2020. "The Regulation Level of Business Hours," MPRA Paper 101392, University Library of Munich, Germany.

    More about this item

    Keywords

    Price discount; Service hours; Ideal service time distribution; Social welfare;
    All these keywords.

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

    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:osk:wpaper:1511. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The Economic Society of Osaka University (email available below). General contact details of provider: https://edirc.repec.org/data/feosujp.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.