Liberalization of opening hours with free entry

Tobias Wenzel

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)511-526
Number of pages16
JournalGerman Economic Review
Volume11
Issue number4
DOIs
Publication statusPublished - 2010

Keywords

  • Deregulation
  • Opening hours
  • Retailing

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Liberalization of opening hours with free entry'. Together they form a unique fingerprint.

Cite this