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https://www.sciencedirect.com/science/article/pii/S2214804318302878?via%3Dihub
https://doi.org/10.1016/j.socec.2018.09.003

has been cited by the following article:

• TITLE: Restaurant Tipping and Economic Efficiency in the Restaurant Market: An Economic Theoretical Analysis

  AUTHORS: Tin-Chun Lin

  KEYWORDS: Restaurant Tipping, Economic Efficiency, Economic Inefficiency, Deadweight Loss

  JOURNAL NAME: Theoretical Economics Letters, Vol.10 No.5, October 27, 2020

  ABSTRACT: In this research, we investigated an interesting and important issue: whether restaurant tipping would lead to economic efficiency or inefficiency in the restaurant market. We applied the theory of consumer choice to link restaurant tipping and consumer behavior. According to our economic theoretical analysis, we concluded that restaurant tipping does discourage consumer demand for restaurant meals, and hence leads to a substitution effect. The presence of a substitution means that well-being has been lost due to the substitution effect of a price-distorting tip, resulting in economic inefficiency in the restaurant market.