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'Dinkies' and Housewives: The Regulation of Shopping Hours
Marcel P. Thum Dresden University of Technology - Faculty of Economics and Business Management; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) - Ifo Institute for Economic Research; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Alfons J. Weichenrieder University of Frankfurt - Chair of Public Finance; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) March 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.
JEL Classifications: L51, L81 Working Paper SeriesDate posted: November 13, 1997 ; Last revised: December 20, 1997Suggested CitationContact Information
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