Behavioral economics analysis of legal rights and obligations of air carriers and passengers
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ID: 286462
2018
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Abstract
With the rapid expansion of the airline industry in the past decades come along various issues. The problems with regard to overbooking, flight delays, and lost or damaged baggage have become pervasive, whether in international or domestic sphere. To address these predicaments in the Philippines, the then Department of Transportation and Communications (DOTC) and the Department of Trade and Industry (DTI) joined forces to come up with the issuance of the DOTC-DTI Joint Administrative Order No. 1, S. 2012, providing for and regulating the rights of air passengers and carrier obligations. This paper assesses the reasonableness and fairness of the Joint Order, as there seems to be an imbalance in the benefits and burdens under such rights and duties. To carry out this endeavor, the researchers utilized behavioral economics, a relatively new concept which recognizes and delves into the study of psychology as it relates to the economic decision-making processes of individuals and institutions. Accordingly, the researchers employed this concept to analyze how air passengers and carriers behave or will behave to the interplay of the circumstances in the airline industry, particularly with regard to the developments brought about by the Joint Order. In conclusion, the researchers found out that certain legal rights and obligations under the Joint Order are unreasonable, failing to afford justifiable protection of the interests of air passengers and carriers.
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| Authors | Vargas, Glen Archibald A. |
| Journal | Malay Journal |
| Year | 2018 |
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| Keywords | Keywords not found |
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