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Opening Hours Decision and Competition in the Motor Vehicle Inspection Market

Habte, Osmis LU (2017) In Working Papers
Abstract
This paper examines the effect of competition on a firm's choice of opening hours in the motor vehicle inspection market. Competition affects the incentive inspection firms face when choosing opening hours, which influences the probability that consumers find service time that best matches their preferred time. We use 2SLS analyses to resolve the potential endogeneity of market entry decisions. Using a detailed monthly firm-level panel data for all inspection firms in Sweden, we find that increased competition, measured using both the number of firms in a geographic market and average distance to nearby competitors, leads to expanded opening hours. The probability that inspection firms offer services on weekends also increases with local... (More)
This paper examines the effect of competition on a firm's choice of opening hours in the motor vehicle inspection market. Competition affects the incentive inspection firms face when choosing opening hours, which influences the probability that consumers find service time that best matches their preferred time. We use 2SLS analyses to resolve the potential endogeneity of market entry decisions. Using a detailed monthly firm-level panel data for all inspection firms in Sweden, we find that increased competition, measured using both the number of firms in a geographic market and average distance to nearby competitors, leads to expanded opening hours. The probability that inspection firms offer services on weekends also increases with local competition. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
opening hours, competition, non-price competition, entry, motor vehicle inspection market, D22, L11, L84
in
Working Papers
issue
2017:20
pages
37 pages
publisher
Department of Economics, Lund University
language
English
LU publication?
yes
id
5db9a658-e224-4a45-bcf8-2ad51384e4b7
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2017_020.htm
date added to LUP
2018-02-16 10:12:59
date last changed
2018-11-21 21:38:04
@misc{5db9a658-e224-4a45-bcf8-2ad51384e4b7,
  abstract     = {{This paper examines the effect of competition on a firm's choice of opening hours in the motor vehicle inspection market. Competition affects the incentive inspection firms face when choosing opening hours, which influences the probability that consumers find service time that best matches their preferred time. We use 2SLS analyses to resolve the potential endogeneity of market entry decisions. Using a detailed monthly firm-level panel data for all inspection firms in Sweden, we find that increased competition, measured using both the number of firms in a geographic market and average distance to nearby competitors, leads to expanded opening hours. The probability that inspection firms offer services on weekends also increases with local competition.}},
  author       = {{Habte, Osmis}},
  keywords     = {{opening hours; competition; non-price competition; entry; motor vehicle inspection market; D22; L11; L84}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{2017:20}},
  publisher    = {{Department of Economics, Lund University}},
  series       = {{Working Papers}},
  title        = {{Opening Hours Decision and Competition in the Motor Vehicle Inspection Market}},
  url          = {{https://lup.lub.lu.se/search/files/50246592/Paper2_OH_AfterFinalSeminar.pdf}},
  year         = {{2017}},
}