Theoretical Economics Letters

Volume 5, Issue 3 (June 2015)

ISSN Print: 2162-2078   ISSN Online: 2162-2086

Google-based Impact Factor: 0.83  Citations  h5-index & Ranking

Modeling the Relationship between Restaurant Tipping and Consumer Behavior

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DOI: 10.4236/tel.2015.53044    10,807 Downloads   14,085 Views  Citations
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ABSTRACT

The theory of consumer choice was applied to model the relationship between restaurant tipping and consumer behavior. Using this model, we showed how consumer behavior responds to restaurant tipping and how tipping affects consumer-utility among different types of consumers and economic efficiency. The theoretical analysis reveals that tipping discourages customers’ demand for restaurant meals, which in turn creates bigger excess burden in the market.

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Lin, T. (2015) Modeling the Relationship between Restaurant Tipping and Consumer Behavior. Theoretical Economics Letters, 5, 389-395. doi: 10.4236/tel.2015.53044.

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