Tipping is a multi-billion-dollar phenomenon that traditional economic theory finds hard to explain. Why do people leave money as tips when service has already been provided? Two main potential reasons are that tipping is a social norm, and a strategic behavior aimed to assure good future service. A game-theoretical model is developed which allows the analysis of how tipping behavior should depend on patronage frequency if strategic motivations affect tipping. Thus, the model provides predictions that can be combined with empirical data on tipping behavior to answer the fundamental question, why do people tip?
[Excerpt] Tipping is an interesting economic behavior because it is an expense that consumers are fr...
Some economists may argue that the billions of dollars a year spent on tipping are difficult to unde...
Some economists believe that social norms are created to improve welfare where the market fails. I s...
A central question about tipping is whether people tip strategically, to improve future service, or ...
In many countries around the world, consumers leave voluntary payments of money (called “tips”) to s...
Tipping is a phenomenon that has been studied for many years, but is receiving increased attention i...
Tipping is an important economic phenomenon, involving about $47Â billion a year in the US food indu...
Tipping is unique in that the customer provides a major portion of the employee\u27s wage. Because t...
Tipping is a world-wide custom involving billions of dollars. The voluntary nature of tipping raises...
We present an optimal-control model where tipping behavior creates reputation that affects future se...
The practice of tipping, voluntary payments made to service staff, has been called irrational, inequ...
According to Segrave (1998), since the late 1800s, the study of tipping has provoked debate in a ran...
Tipping is a phenomenon that has been studied for many years, but is receiving increased attention i...
This paper offers a thoughtful discussion of social norms and alternative economic viewpoints and an...
The paper attempts to shed light on the key drivers of consumer tipping behavior and reports the fin...
[Excerpt] Tipping is an interesting economic behavior because it is an expense that consumers are fr...
Some economists may argue that the billions of dollars a year spent on tipping are difficult to unde...
Some economists believe that social norms are created to improve welfare where the market fails. I s...
A central question about tipping is whether people tip strategically, to improve future service, or ...
In many countries around the world, consumers leave voluntary payments of money (called “tips”) to s...
Tipping is a phenomenon that has been studied for many years, but is receiving increased attention i...
Tipping is an important economic phenomenon, involving about $47Â billion a year in the US food indu...
Tipping is unique in that the customer provides a major portion of the employee\u27s wage. Because t...
Tipping is a world-wide custom involving billions of dollars. The voluntary nature of tipping raises...
We present an optimal-control model where tipping behavior creates reputation that affects future se...
The practice of tipping, voluntary payments made to service staff, has been called irrational, inequ...
According to Segrave (1998), since the late 1800s, the study of tipping has provoked debate in a ran...
Tipping is a phenomenon that has been studied for many years, but is receiving increased attention i...
This paper offers a thoughtful discussion of social norms and alternative economic viewpoints and an...
The paper attempts to shed light on the key drivers of consumer tipping behavior and reports the fin...
[Excerpt] Tipping is an interesting economic behavior because it is an expense that consumers are fr...
Some economists may argue that the billions of dollars a year spent on tipping are difficult to unde...
Some economists believe that social norms are created to improve welfare where the market fails. I s...