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Restaurant tips and service quality: a reply to Lynn

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  • Őrn Bodvarsson

Abstract

In his 'Comment' in this journal on a recent article in Applied Economics by myself and two coauthors (Bodvarsson, Ő. B., Luksetich, W. A. and McDermott, S. (2003), Lynn (forthcoming) makes three criticisms of the study on the relationship between service quality and tips. In one of these criticisms, he reanalyses the data and concludes that the two stage least squares estimate of the marginal effect of service quality on tips is invalid and should be replaced with his own ordinary least squares estimate. The purpose of this 'Reply' is to address each criticism and, in particular, to explain why Lynn's ordinary least squares estimate is not valid.

Suggested Citation

  • Őrn Bodvarsson, 2005. "Restaurant tips and service quality: a reply to Lynn," Applied Economics Letters, Taylor & Francis Journals, vol. 12(6), pages 345-346.
    • Handle: RePEc:taf:apeclt:v:12:y:2005:i:6:p:345-346
    DOI: 10.1080/13504850500076981
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    References listed on IDEAS

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    1. Orn Bodvarsson & William Luksetich & Sherry McDermott, 2003. "Why do diners tip: rule-of-thumb or valuation of service?," Applied Economics, Taylor & Francis Journals, vol. 35(15), pages 1659-1665.
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    Cited by:

    1. Ofer Azar, 2009. "Incentives and service quality in the restaurant industry: the tipping-service puzzle," Applied Economics, Taylor & Francis Journals, vol. 41(15), pages 1917-1927.
    2. Azar, Ofer H., 2006. "Tipping, firm strategy, and industrial organization," MPRA Paper 4485, University Library of Munich, Germany.

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