Norms, moods, and free lunch: Longitudinal evidence on payments from a Pay-What-You-Want restaurant
We study the distribution and evolution of payments in a Pay-What-You-Want restaurant. Despite missing price tags and despite the option to pay nothing at all, we observe that the vast majority of guests makes strictly positive payments. Over the two years covered by our data, average payments decline slightly, converging at a positive level. At the same time, the number of daily guests increases steadily, resulting in a considerable increase in total revenues. We discuss one possible interpretation of the long-term trend in payments in terms of social norms. We further show that short-term fluctuations in average payments are partly explained by exogenous weather changes. We provide evidence that – in line with work in psychology – weather-induced changes in mood affect payments.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 41 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/620175|
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.:
- Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
- Alessandro Balestrino & Cinzia Ciardi, 2007.
"Social Norms, Cognitive Dissonance and the Timing of Marriage,"
CESifo Working Paper Series
2068, CESifo Group Munich.
- Balestrino, Alessandro & Ciardi, Cinzia, 2008. "Social norms, cognitive dissonance and the timing of marriage," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2399-2410, December.
- Regner, Tobias & Barria, Javier A., 2009.
"Do consumers pay voluntarily? The case of online music,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 71(2), pages 395-406, August.
- Tobias Regner & Javier A. Barria, 2007. "Do Consumers Pay Voluntarily? The Case of Online Music," Jena Economic Research Papers 2007-011, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Traxler, Christian, 2010.
"Social norms and conditional cooperative taxpayers,"
European Journal of Political Economy,
Elsevier, vol. 26(1), pages 89-103, March.
- Traxler, Christian, 2006. "Social Norms and Conditional Cooperative Taxpayers," Discussion Papers in Economics 1202, University of Munich, Department of Economics.
- Azar, Ofer H., 2004.
"What sustains social norms and how they evolve?: The case of tipping,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 54(1), pages 49-64, May.
- Ofer H. Azar, 2003. "What sustains social norms and how they evolve? The case of tipping," Others 0309001, EconWPA.
- Steven D. Levitt, 2006. "White-Collar Crime Writ Small: A Case Study of Bagels, Donuts, and the Honor System," American Economic Review, American Economic Association, vol. 96(2), pages 290-294, May.
- David Hirshleifer & TYLER G. SHUMWAY, 2004.
"Good Day Sunshine: Stock Returns and the Weather,"
- Ofer H. Azar, 2005.
"Why pay extra? Tipping and the importance of social norms and feelings in economic theory,"
- Azar, Ofer H., 2007. "Why pay extra? Tipping and the importance of social norms and feelings in economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 250-265, April.
- Kirchsteiger, Georg & Rigotti, Luca & Rustichini, Aldo, 2006. "Your morals might be your moods," Journal of Economic Behavior & Organization, Elsevier, vol. 59(2), pages 155-172, February.
- Saunders, Edward M, Jr, 1993. "Stock Prices and Wall Street Weather," American Economic Review, American Economic Association, vol. 83(5), pages 1337-45, December.
- Akerlof, George A, 1980.
"A Theory of Social Custom, of Which Unemployment May be One Consequence,"
The Quarterly Journal of Economics,
MIT Press, vol. 94(4), pages 749-75, June.
- George A. Akerlof, 1978. "A theory of social custom, of which unemployment may be one consequence," Special Studies Papers 118, Board of Governors of the Federal Reserve System (U.S.).
- Mengel, Friederike, 2008. "Matching structure and the cultural transmission of social norms," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 608-623, September.
- López-Pérez, Raúl, 2009. "Followers and leaders: Reciprocity, social norms and group behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 557-567, August.
- Gerald J. Pruckner & Rupert Sausgruber, 2008.
"Honesty on the Streets - A Natural Field Experiment on Newspaper Purchasing,"
2009-24, Faculty of Economics and Statistics, University of Innsbruck.
- Gerald J. Pruckner & Rupert Sausgruber, 2009. "Honesty on the Streets: A Natural Field Experiment on Newspaper Purchasing," NRN working papers 2009-24, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:41:y:2012:i:4:p:476-483. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.