Consumers in many countries often give voluntary payments of money (tips) to the workers who have served them. These tips are supposed to be a reward for service and research indicates that they do increase with customers’ perceptions of service quality. This paper contributes to the...

Many service firms allow their employees to be directly compensated by customers via the institution of tipping despite the fact this practice exposes firms to substantial risks, such as collusion between employees and customers against the firm. This paper examines a potential reason businesses...

From a mainstream economic perspective, tipping is often seen as a rather anomalous or irrational economic activity since consumers could legally and willingly avoid paying tips altogether. Nevertheless, this pervasive economic activity generates tens of billions of dollars in income a year,...

Consumers selected round prices and/or sales-totals at greater than chance levels across two different pay-what-you-want situations and one self-pumped gasoline purchase. The differences among these situations suggest that the tendency to select round prices/sales-totals reflects a subjective...

In many countries around the world, consumers leave voluntary payments of money (called “tips”) to service workers who have served them. Since tips are an expense that consumers are free to avoid, tipping is an anomalous behavior that many economists regard as “irrational” or...