Restaurant tips and service quality: a reply to Lynn
AbstractIn his 'Comment' in this journal on a recent article in Applied Economics by myself and two coauthors (Bodvarsson, Ő. B., Luksetich, W. A. and McDermott, S. (2003), Lynn (forthcoming) makes three criticisms of the study on the relationship between service quality and tips. In one of these criticisms, he reanalyses the data and concludes that the two stage least squares estimate of the marginal effect of service quality on tips is invalid and should be replaced with his own ordinary least squares estimate. The purpose of this 'Reply' is to address each criticism and, in particular, to explain why Lynn's ordinary least squares estimate is not valid.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Applied Economics Letters.
Volume (Year): 12 (2005)
Issue (Month): 6 ()
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- Azar, Ofer H., 2006. "Tipping, firm strategy, and industrial organization," MPRA Paper 4485, University Library of Munich, Germany.
- Ofer Azar, 2009.
"Incentives and service quality in the restaurant industry: the tipping-service puzzle,"
Taylor and Francis Journals, vol. 41(15), pages 1917-1927.
- Azar, Ofer H., 2005. "Incentives and Service Quality in the Restaurant Industry: The Tipping – Service Puzzle," MPRA Paper 4457, University Library of Munich, Germany, revised 2006.
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