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Do people tip because of psychological or strategic motivations? An empirical analysis of restaurant tipping

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  • Ofer Azar

Abstract

One of the most interesting and central questions about tipping is why people tip. The two major potential reasons are strategic behaviour aimed to ensure good future service and social/psychological motivations. Data on tipping behaviour suggests that there is no positive effect of patronage frequency on the sensitivity of tips to service quality. This implies that people tip only because of social and psychological motivations, and not because of strategic reasons and future service considerations.

Suggested Citation

  • Ofer Azar, 2010. "Do people tip because of psychological or strategic motivations? An empirical analysis of restaurant tipping," Applied Economics, Taylor & Francis Journals, vol. 42(23), pages 3039-3044.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:3039-3044
    DOI: 10.1080/00036840801964831
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    References listed on IDEAS

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    1. Ofer H. Azar & Yossi Tobol, 2008. "Tipping as a Strategic Investment in Service Quality: An Optimal-Control Analysis of Repeated Interactions in the Service Industry," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 246-260, July.
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    1. repec:eee:jeborg:v:145:y:2018:i:c:p:95-113 is not listed on IDEAS
    2. Schlüter, Achim & Vollan, Björn, 2015. "Flowers and an honour box: Evidence on framing effects," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 186-199.
    3. Saunders, Stephen G. & Lynn, Michael, 2010. "Why tip? An empirical test of motivations for tipping car guards," Journal of Economic Psychology, Elsevier, vol. 31(1), pages 106-113, February.
    4. repec:mup:actaun:actaun_2018066010273 is not listed on IDEAS

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