| By: |
Amir B. Ferreira Neto (West Virginia University, Department of Economics);
Adam Nowak (West Virginia University, Department of Economics);
Amanda Ross (University of Alabama, Department of Economics, Finance, and Legal Studies) |
| Abstract: |
We revisit the mechanisms that drive tipping behavior by comparing tourists
and locals in New York City. It is unlikely a tourist will tip as a way of
enforcing repeated interactions since they are not from the area, while a
local may tip as an enforcement mechanism. However, if people tip because of
social norms, we should see both tourists and locals tipping similar amounts.
We compare locals and tourists who are theatergoers to control for education
and income, as these factors are likely to affect tipping behavior. Using data
from the New York City and Limousine Commission on yellow taxis, we identify
tourists as those trips leaving from or going to a hotel and theatergoers as
trips where the drop off or pick up is near Broadway within 30 minutes of the
beginning or end of a show. Our results suggest that tourists and theatergoers
tip more than locals and non-theatergoers, and tourists who are theatergoers
tip even more, between 0.51% and 0.67% more. These results are robust across
specifications and suggest that social norms are likely driving tipping
behavior. |
| Keywords: |
tipping behavior, social norms |
| Date: |
2017–07 |
| URL: |
http://d.repec.org/n?u=RePEc:wvu:wpaper:17-14&r=tur |