Economic Behavior of Restaurant Tipping

Tin-Chun Lin ()
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Tin-Chun Lin: Indiana University - Northwest

Economics Bulletin, 2007, vol. 4, issue 2, 1-10

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.

Keywords: Restaurant; tipping; Social; norms; Excess; burden (search for similar items in EconPapers)
JEL-codes: D0 (search for similar items in EconPapers)
Date: 2007-01-31
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