This paper experimentally investigates the impact of suggestive messages and tipping on a third party's judgment. The experimental design uses a model with three players, wherein two players (A and B) create a joint project, and the third player (C) decides how to divide the project's earnings...

Some economists believe that social norms are created to improve welfare where the market fails. I show that tipping is such a norm, using a model in which a waiter chooses service quality and then a customer chooses the tip. The customer's utility depends on the social norm about tipping and...