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The History of Tipping - From Sixteenth-Century England to United States in the 1910s

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Author Info
Ofer H. Azar (Northwestern University)

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Abstract

Tipping 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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File URL: http://129.3.20.41/eps/eh/papers/0309/0309001.pdf
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Paper provided by EconWPA in its series Economic History with number 0309001.

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Date of creation: 04 Sep 2003
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Handle: RePEc:wpa:wuwpeh:0309001

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Web page: http://129.3.20.41

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Related research
Keywords: Tipping; History; Social norms; Feelings;

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Find related papers by JEL classification:
N30 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - 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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lynn, Michael & Grassman, Andrea, 1990. "Restaurant tipping: an examination of three 'rational' explanations," Journal of Economic Psychology, Elsevier, vol. 11(2), pages 169-181, June. [Downloadable!] (restricted)
  2. Ofer H. Azar, 2003. "The implications of tipping for economics and management," Others 0309002, EconWPA. [Downloadable!]
  3. Wessels, Walter John, 1997. "Minimum Wages and Tipped Servers," Economic Inquiry, Oxford University Press, vol. 35(2), pages 334-49, April.
  4. Ofer H. Azar, 2003. "The Social Norm of Tipping: A Review," Others 0309006, EconWPA. [Downloadable!]
  5. Lynn, Michael & McCall, Michael, 2000. "Gratitude and gratuity: a meta-analysis of research on the service-tipping relationship," The Journal of Socio-Economics, Elsevier, vol. 29(2), pages 203-214. [Downloadable!] (restricted)
  6. Bodvarsson, Orn B. & Gibson, William A., 1994. "Gratuities and customer appraisal of service: Evidence from Minesota restaurants," The Journal of Socio-Economics, Elsevier, vol. 23(3), pages 287-302. [Downloadable!] (restricted)
  7. Lynn, Michael & Zinkhan, George M & Harris, Judy, 1993. " Consumer Tipping: A Cross-Country Study," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 20(3), pages 478-88, December.
  8. Ofer H. Azar, 2003. "What sustains social norms and how they evolve? The case of tipping," Others 0309001, EconWPA. [Downloadable!]
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  9. Fortin, Pierre & Keil, Manfred & Symons, James, 2001. "The Sources of Unemployment in Canada, 1967-91: Evidence from a Panel of Regions and Demographic Groups," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 67-93, January.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tobias Regner, 2005. "Why Voluntary Contributions? Google Answers," The Centre for Market and Public Organisation 05/115, Department of Economics, University of Bristol, UK. [Downloadable!]
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