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The effects of party size and dining duration on tipping behavior

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  • Haugom, Erik
  • Thrane, Christer

Abstract

In this study, we propose a theoretical framework to explain how party size and dining duration affect tipping behavior. The framework suggests that both the party size and the dining duration effects are hill-shaped and thus should be modeled nonlinearly. We use data from a large-scale transaction database (n > 800,000) for a Norwegian restaurant chain to test the proposed effects. We also merge these data with information on waiter characteristics and customer ratings for the 60 pizza restaurants in the sample. In line with the theoretical propositions, the results show that party size and dining duration affect tipping behavior nonlinearly. The association between both variables and tipping is mostly inversely U-shaped. Yet both effects are contingent on each other, the size of the bill, customer ratings, and the presence of alcohol consumption.

Suggested Citation

  • Haugom, Erik & Thrane, Christer, 2025. "The effects of party size and dining duration on tipping behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 117(C).
    • Handle: RePEc:eee:soceco:v:117:y:2025:i:c:s2214804325000539
    DOI: 10.1016/j.socec.2025.102386
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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