Business Hours, Store Quality, and Social Welfare

Mai Yamada ()
Additional contact information
Mai Yamada: Showa Women’s University

Journal of Industry, Competition and Trade, 2019, vol. 19, issue 3, No 5, 465-478

Abstract: Abstract This paper examines retail strategies related to business hours, store quality, and price. We consider a cost regime in which quality investments are more costly for extended business hours. The cost regime captures additional investment costs for customer and security service during late hours. This is a novel feature in the existing literature on retail competition in business hours and prices. We show that a retailer with shorter business hours chooses higher store quality and charges lower prices. We also find that the liberalization of business hours is desirable in view of social welfare because store quality and demand under liberalized business hours are greater than those under regulated business hours.

Keywords: Business hours; Location; Multi-dimensional product differentiation; Duopoly (search for similar items in EconPapers)
JEL-codes: D21 L51 R32 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s10842-019-00299-z Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:jincot:v:19:y:2019:i:3:d:10.1007_s10842-019-00299-z

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/10842/PS2

DOI: 10.1007/s10842-019-00299-z

Access Statistics for this article

Journal of Industry, Competition and Trade is currently edited by Karl Aiginger, Marcel Canoy and Michael Peneder

More articles in Journal of Industry, Competition and Trade from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().