Restriction of indemnities by luggage misplacement in international air transport an approach from the perspective of economic analysis of the law

Abstract

Based on the analysis of the role that information plays in contracts as an instrument of economic exchange, the paper evaluates, in the light of precedents rendered by the Brazilian Constitutional Court, the efficiency of the application of the Warsaw Convention system of rules in cases of compensation for mishandled baggage during international flights. It also exemplifies how compensation for lost baggage is considered on companies’ cost structure, how the limitation of liability reduces the information asymmetry and favors the fair allocation of costs and prices.