The History of Tipping - From Sixteenth-Century England to United States in the 1910s
AbstractTipping is a multi-billion-dollar phenomenon that challenges the traditional assumption of selfish economic agents who have no feelings and do not care about social norms. This article reviews the early history of tipping and offers an economic analysis of different aspects of tipping. Using the historical evidence, it then addresses two major questions about tipping: why do people tip? And does tipping improve service quality? The reasons for tipping changed over the years, but conforming to social norms and avoiding embarrassment were generally the main reasons. Tipping seems to improve service quality; the extent of the improvement varies across occupations.
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Bibliographic InfoPaper provided by EconWPA in its series Economic History with number 0309001.
Date of creation: 04 Sep 2003
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Tipping; History; Social norms; Feelings;
Other versions of this item:
- Azar, Ofer H., 2004. "The history of tipping--from sixteenth-century England to United States in the 1910s," The Journal of Socio-Economics, Elsevier, vol. 33(6), pages 745-764, December.
- N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
- N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
- J00 - Labor and Demographic Economics - - General - - - General
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- D10 - Microeconomics - - Household Behavior - - - General
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