This study examines the redistributive effects of government regulations concerning the hours in which retail stores may remain open for business. Throughout Canada, municipal by ‐laws restrict nighttime shopping hours to a few specified days of the week. In analyzing the outcome of these restrictions, a model of consumer behaviour is used which emphasizes the consumers's decision concerning the allocation of purchases between small and large retail outlets. The empirical results are consistant with the theoretical model, indicating that such market intervention redistributes sales from large to small stor