Hidden Baggage: Behavioral Responses to Changes in Airline Ticket Tax Disclosure

• 成果类型: Article
• 署名作者: Bradley, Sebastien; Feldman, Naomi E.
• 署名单位: Drexel University; Hebrew University of Jerusalem
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20190200
• 发表日期: 2020
• 页码: 58-87
• 关键词: salience; INFORMATION; IMPACT

摘要

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.