. Millions of workers in the US alone derive most of their income from tips and tipping is prevalent in numerous countries and … tipping, firm strategy, and industrial organization. This part of the literature deals with the effect of tipping on firms and … and demonstrate the close relationship of tipping to industrial organization and firm strategy. The purpose of this paper …

because they know that waiters' income depends on tips. Tipping is motivated more by the positive consequences of tipping than … tips or their sensitivity to service quality. Respondents report tipping much more for excellent service than for poor …Tipping is a multi-billion dollar phenomenon and a major source of income for millions of workers. The results of a …

Tipping is a significant economic activity (tips in the US food industry alone amount to about $42 billion annually … might be wrong. A simple model shows formally that tips can improve service only if they are sensitive enough to service … quality. Empirical evidence suggests that tips are hardly affected by service quality. Nevertheless, rankings of service …

We present an optimal-control model where tipping behavior creates reputation that affects future service. Tipping and … reputation can evolve in four path prototypes: converging to an interior equilibrium; converging to minimum tips and reputation …; and two prototypes that start differently but end with tips and reputation increasing indefinitely. Analyzing the interior …

This paper proposes a new formulation of the theory of social norms. The theoretical model explores the interrelation … conform or not to social norms on the other. It is shown that rational consumers will obey inefficient social norms, which in … norms, the latter of which can be used as a freedom indicator regarding social pressure. …

This paper proposes a new theory of social norms that explores the relation between individuals' income, time … social norms on the other. It is shown that rational consumers may obey inefficient social norms, which in turn would slow … norms, the latter of which can be used as an indicator of social pressure regarding conformity. …

organization, firm strategy, and consumer economics. …

because they know that waiters' income depends on tips. Tipping is motivated more by the positive consequences of tipping than … tips or their sensitivity to service quality. Respondents report tipping much more for excellent service than for poor …Tipping is a multi-billion dollar phenomenon and a major source of income for millions of workers. The results of a …

The paper presents a model of the evolution of social norms. When a norm is costly to follow and people do not derive …, increased over the years, suggesting that people derive benefits from tipping, such as impressing others and improving their …

Tipping is a multi-billion-dollar phenomenon that standard economic models find hard to explain. I discuss several … aspects of tipping and divide tipping to six different categories: reward-tipping, price- tipping, tipping-in-advance, bribery-tipping …, holiday-tipping and gift- tipping, and discuss the economics of each category. Often tipping has economic justification …