Faculty of Economics and Business Administration Publications Database

Dinkies` and Housewives: The Regulation of Shopping Hours

Thum, Marcel
Volume: 50
Number: 4
Pages: 539 - 559
ISSN-Print: 0023-5962
Year: 1997
Abstract: The idea of deregulating shopping hours brings strong opposition from many groups in the society. Surprisingly, even many consumers oppose deregulation. The paper rationalizes this behavior by considering heterogeneous consumers who differ in their earnings abilities. If a majority of families has two income earners, long opening hours become essential and the regulation of shopping hours tends to be eliminated. If most families are single income households, the regulation may be imposed in order to keep prices low. Taking the repercussions on the labor supply decision into account, multiple equilibria can be explained.