Dynamic effects of tariff unbundling in oligopolistic marketsevidence from baggage fee regulation in the brazilian airline industry

Resumo

This article estimates the causal effect of the authorization to charge for checked baggage, introduced in Brazil in 2017, on domestic airfares between 2012 and 2023. A difference- in-differences model combined with a dynamic event-study design is employed, using the logarithm of the average fare per kilometer flown as the dependent variable, which enhances international comparability and controls for route-length heterogeneity. The models include structural, operational, and macroeconomic controls, as well as airport and time fixed effects, with two-way clustered standard errors. The results indicate an initial competitive shock, with a 5% to 7% reduction in Brazilian fares in the short run, consistent with price unbundling adjustments. However, these effects do not persist: tariffs gradually recomposed in the medium run and, in the long run, increased by about 3% to 4%, suggesting the internalization of ancillary revenues and pricing strategies aligned with the sector’s oligopolistic structure. Robustness tests confirm the consistency of the findings, indicating that the policy only temporarily affected price levels in the Brazilian aviation market.

Ficha do documento

Tipo

Artigo científico

Ano

2026

Instituição

Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária

Fonte

Estudos Econômicos

Idioma

Português

Acesso

Não informado

DOI

10.1590/1980-53575626tcdm

Identificador

oai:revistas.usp.br:article/232812

Licença

https://creativecommons.org/licenses/by/4.0

Temas

Transportes

Palavras-chave

Air transportMarketDeregulationDifferences in DifferencesTransporteMercadoDesregulamentaçãoDiferenças em Diferanças