Journal article
Hidden Baggage: Behavioral Responses to Changes in Airline Ticket Tax Disclosure
American economic journal. Economic policy, v 12(4), pp 58-87
01 Nov 2020
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
We examine the impact of a January 2012 enforcement action by the US Department of Transportation that required US air carriers and online travel agents to modify their web interfaces to incorporate all ticket taxes in up-front, advertised fares. We show that the more prominent display of-tax-inclusive prices is associated with significant reductions in consumer tax incidence, demand, and ticket revenues along more-heavily taxed itineraries. In particular, the fraction of unit taxes that airlines passed onto consumers fell by roughly 75 cents for every dollar of tax. These results present evidence of consumer inattention in a novel institutional setting featuring-quasi-experimental variation in tax salience, -economically significant tax amounts, and endogenous price responses.
Metrics
Details
- Title
- Hidden Baggage: Behavioral Responses to Changes in Airline Ticket Tax Disclosure
- Creators
- Sebastien Bradley - Drexel University, Economics (School of Economics)Naomi E. Feldman - Hebrew University of Jerusalem
- Publication Details
- American economic journal. Economic policy, v 12(4), pp 58-87
- Publisher
- Amer Economic Assoc
- Number of pages
- 30
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000611111200003
- Scopus ID
- 2-s2.0-85125093127
- Other Identifier
- 991019167751604721
UN Sustainable Development Goals (SDGs)
This publication has contributed to the advancement of the following goals:
Source: SDGs in the Output
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics