Abstract
We examine the relationship between opening hours and proximity to competition in the Finnish pharmacy market. In this market, competition is primarily based on non-price factors such as service hours due to regulated prices and pharmacy locations. We develop a theoretical model of duopolistic competition incorporating spatial and temporal dimensions in which pharmacies compete on opening hours, given their exogenous locations and fixed prices for pharmaceuticals. We test the predictions of the theoretical model across multiple empirical specifications and observe that pharmacies for which the nearest competitor is further away generally have shorter opening hours.