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Economic Behavior of Restaurant Tipping

Author

Listed:
  • Tin-Chun Lin

    (Indiana University - Northwest)

Abstract

This paper offers a thoughtful discussion of social norms and alternative economic viewpoints and analysis of restaurant tipping behavior. A survey of Louisiana residents was conducted to collect public opinions about tipping. The analysis suggests that social norms are indeed the primary reason for diner tipping. As long as consumer behavior is guided by social norms, social norms will costs for diners. The conclusion suggests that if customer's tipping behavior were completely guided by social norms and tips were not treated as the costs of servers'' services, tips would excess burden in the restaurant food market.

Suggested Citation

  • Tin-Chun Lin, 2007. "Economic Behavior of Restaurant Tipping," Economics Bulletin, AccessEcon, vol. 4(2), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-06d00024
    as

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    References listed on IDEAS

    as
    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.
    2. Conlin, Michael & Lynn, Michael & O'Donoghue, Ted, 2003. "The norm of restaurant tipping," Journal of Economic Behavior & Organization, Elsevier, vol. 52(3), pages 297-321, November.
    3. Jacob, Nancy L & Page, Alfred N, 1980. "Production, Information Costs, and Economic Organization: The Buyer Monitoring Case," American Economic Review, American Economic Association, vol. 70(3), pages 476-478, June.
    4. Azar, Ofer H., 2004. "The history of tipping--from sixteenth-century England to United States in the 1910s," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(6), pages 745-764, December.
    5. Peter M. Kerr & Bruce R. Domazlicky & Adam P. Kerr & Joseph R. Knittel, 2006. "An Objective Measure of Service and Its Effect on Tipping," Journal of Economic Insight, Missouri Valley Economic Association, vol. 32(2), pages 61-69.
    6. Lynn, Michael & McCall, Michael, 2000. "Gratitude and gratuity: a meta-analysis of research on the service-tipping relationship," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(2), pages 203-214.
    7. Bodvarsson, Orn B. & Gibson, William A., 1994. "Gratuities and customer appraisal of service: Evidence from Minesota restaurants," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 23(3), pages 287-302.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Restaurant tipping Social norms Excess burden;

    JEL classification:

    • D0 - Microeconomics - - General

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