Opening Hours and Quality Choices

Mai Yamada

MPRA Paper from University Library of Munich, Germany

Abstract: Using a duopoly model with symmetric retailers, we show that retailer strategies regarding opening hours and quality choices of goods vary depending on the cost structure of the quality investment in goods. In the case of the cost remaining constant regardless of the length of opening hours, a retailer with longer opening hours chooses higher quality and charges higher prices. Conversely, in the case of the cost increasing proportional to opening hours, a retailer with longer opening hours chooses lower quality and charges lower prices. The latter case is consistent with the behavior of retailers in Japan.

Keywords: Duopoly; Opening hours; Multi-dimensional product differentiation (search for similar items in EconPapers)
JEL-codes: L13 L51 R32 (search for similar items in EconPapers)
Date: 2014-05-18
New Economics Papers: this item is included in nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/56066/1/MPRA_paper_56066.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/81050/1/MPRA_paper_81050.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/84073/1/MPRA_paper_81050.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/84101/1/MPRA_paper_81050.pdf revised version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:56066

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().