Yet, empirical evidence is rare, since most policy experiments from Western Europe are from recent statistics and the effects happen in the very long run. A study by the Civil Department (1991) includes information about the time prior to and after deregulation. It’s revealed that deregulation suggests a cost decrease and an increase in retail sales. Moreover, the effect on labour depends on the summation of counteracting forces. In this paper a partial-equilibrium model for a retail shop is combined using the parameters in Sweden along with an estimate of the effects in the Netherlands is given. For this experiment, it is revealed that the overall effect on labor will be favorable. In future work, there are numerous paths to explore.
To begin with, it’s necessary to get more insights to the gap between the retail sector in different European countries and Sweden. In that manner, we could assess whether the proposed efficiency gain will also take place in the Netherlands. Second, at the Swedish version the number of opening hours will be a real time variable. It is, nevertheless, more sensible to assume that the flexibility gain depends on time and day. In countries with liberalized launching hours small retail shops succeed in moving their opening hours in daily to the evening. However, such a feature cannot be obtained by the model. Third, game-theoretic issues could be involved. A significant extension should really be a Stackelberg equilibrium with the large-scale retail shop as the leader. Fourth, it’s necessary to permit for exit or entrance and thus acquire more insights into the impacts for the structure of the retail industry.
Regardless of the shortcomings of the strategy in this paper, there seems to be evidence that lifting existing limitations is economically profitable. The theoretical literature is quite mixed in regards to the probable effects of such a policy. Using an empirical model for optimal retail behaviour, it is revealed that the financial potential can be high. It is shown that employment goes up mostly due to an increase in threshold labor. On the other hand, the size of this effect is dependent upon the typical number of additional hours as a consequence of deregulation. Accordingly, by using the design for optimum retail behaviour a perfect principle for extending opening hours will be given. This principle suggests that the possibility of longer opening hours is large. It is, however, revealed that from the noncooperative equilibrium this capacity is higher than at the cooperative equilibrium, and that large scale stores gain more from the deregulation. In countries such as the Netherlands, Belgium, and Germany, a discussion about the ramifications is taking place with strictly contrary meanings. On the 1 side, some store owners see extra opening hours as a vital step to strengthen their competitiveness, on the opposite side unions and other store owners dread for higher costs and a shake-out of small stores (e.g., IFO, 1995). Inside this discussion not simply the economic effects, but also some more moral aspects concerning Sunday trading play an important role.