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The Economic Efficiency of Sunday Trading Restrictions

John Kay and C N Morris

Journal of Industrial Economics, 1987, vol. 36, issue 2, 113-29

Abstract: Restriction of shop opening hours is current, but controversial, pr actice in Britain and much of Europe. The economic case presented for such restrictions is that, given the constraint that individual shop s may not vary their price by time of day, competitive pressures woul d induce excessive opening at times when high costs would be incurred , such as on Sundays. The authors show that such inefficient equilib ria are a theoretical possibility. Empirical evidence on retail costs and demand in the United Kingdom shows that this case does not arise in practice and that deregulation of opening hours would lead to low er costs and prices. Copyright 1987 by Blackwell Publishing Ltd.

Date: 1987
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