The theoretical literature concerning these effects is quite mixed. Several models, like the spatial-equilibrium models predict cost gains, whereas the imperfect-information equilibrium models forecast price decreases. For this reason, it’s important to look at the empirical evidence. Yet, empirical evidence is scarce, since most policy experiments from Western Europe are from recent statistics and the effects take place in the very long run. An exception is Sweden, where full deregulation of shop opening laws happened in 1972. It’s shown that deregulation implies a cost decrease and an increase in retail sales.
In addition, the effect on labor is dependent upon the summation of counteracting forces. Within this paper a partial-equilibrium version for a retail store is combined using the parameters in Sweden and also an estimate of these effects from the Netherlands is given.
For this experiment, it is revealed that the general effect on labor will be favorable. In the future work, there are numerous paths to explore. To begin with, it is necessary to get more insights to the difference between the retail industry in various European countries and Sweden. In that way, we could judge whether the suggested efficacy gain will even happen in the Netherlands.
Second, at the Swedish model the number of opening hours will be a real time variable. It is, however, more reasonable to suppose that the flexibility gain depends on time and day. In countries with liberalized launching hours little retail shops succeed in transferring their opening hours from daily to the day. But, such a feature cannot be captured by this model. Third, game-theoretic issues could be included.
A significant expansion should be a Stackelberg equilibrium with the large scale retail store as the leader. Fourth, it’s crucial to permit for exit or entry and therefore acquire more insights in the impacts for the construction of the retail industry. Despite the shortcomings of this strategy in this paper, there seems to be proof that raising existing restrictions is economically lucrative.